THE council has warned of job losses and further cuts to services with a worrying gap in the authority’s budget expected to rise to at least £4m in the next five years.

Cuts of between eight and 10 per cent are predicted to be needed to bring Worcester City Council’s spending in line with income and it said it will look at outsourcing services and turning to sponsors, volunteers and other community organisations to run some of its activities.

Council bosses are already discussing cuts to departmental budgets and alongside potential job losses have re-opened the voluntary redundancy scheme to try and save as much money as possible.

The council warns that already squeezed services will be cut to the bone with only the amenities the authority has to do by law spared from the chop.

A gloomy report by the council’s managing director David Blake paints less than a happy picture of the city council’s books with an ever-increasing gap expected to reach nearly £4m by 2028 based on current predictions.

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The city council was facing a £1.7m gap in its books this year – which it has already been agreed will be filled by using reserves – and council bosses warn they are now reaching the point where there will not be enough in the reserves to continue plugging gaps in the budget in that way.

The council said it would continue to meet its statutory responsibilities – those things which it must do by law – but “outside of that, services will be decommissioned as necessary” and ‘nothing is protected’ from cuts.

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The high rate of inflation is already expected to add another £300,000 to the council’s costs for this financial year with energy costs rocketing by £600,000 – including a contribution to struggling Freedom Leisure for running some of the city’s leisure centres such as Perdiswell – and agreed pay rises are expected to add around another £700,00 to the budget.

Mr Blake said the council’s medium-term planning had been “hampered” in recent years by “constraints” on the public purse and decisions by the government to only make local authority funding announcements every 12 months rather than for several years at a time.

The council said it was “essential” it looked at its costs with energy bills rising and government funding for local authorities falling.

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“It is essential that we look at the costs of delivering essential services to make sure that that they are cost-effective and efficient and also to make sure that we are focusing on delivering the services that people need,” a spokesperson said.

“We also need to make sure that where costs are increasing for paid-for services, those costs are met by those who choose to pay for them rather than falling to council taxpayers – we need to get to a position where increases in costs are matched by increases in income every year to ensure that services are sustainable in the long term.”

The report will be discussed by the policy and resources committee at a meeting in the Guildhall from 7pm on May 23.