THE proposed scrapping of a series of planned improvements to key areas of Worcester because of a gaping hole in council budgets is bad news all round for the city.

The £3.5m gap in Worcester's capital budget looks likely to be plugged via a series of cutbacks.

Key among these is the scrapping of plans to further improve the riverside and the High Street and to pedestrianise Cathedral Square.

Council leaders say the credit crunch means it can no longer afford to borrow the £3m it had earmarked for these projects. Sales of former council houses have also slowed to a trickle, cutting back the council's income projections.

The gloomy news comes on top of operating budget gaps of more than £1m revealed at the end of last year.

Some might suggest the Conservative-run council is pleading poverty to highlight a claimed lack of funding from central government. We are not sure about such a view; particularly as an all-party letter pointing out the problems caused by this year's settlement has gone to Whitehall.

We are sure, however, that the cuts we report today have the potential to slow Worcester's ambitious plans for progress. It could be said it puts the city on a backward track.

The city needs to be able to keep pace with the needs of the next decade, particularly as developments like the new university campus take shape.

We fear today's news could leave Worcester lagging behind.