CITY council leader Simon Geraghty said his Tory administration had no choice but to announce a sweeping package of cuts in the face of an “unprecedented” financial crisis.

An independent report by consultants last month revealed the size of the black hole in the Guildhall finances, recommending the city cut more than £3 million from next year’s budget in order to balance the books.

“We’ve got no choice but to reduce jobs and services,” Coun Geraghty said. “These are clearly challenging times for the city council – for the staff, councillors and the Worcester public.

“We’re trying to minimise the impact but I would not deny these changes will be detrimental for staff and the wider public. We’ve tried to minimise it, but this time round people will see an effect.”

He said he hoped police might agree to take over the monitoring of CCTV cameras when the council pulls out, adding that the cut-back will not come into effect for another 12 months.

He said he also hoped organisations which are having their funding cut, such as tourism body Visit Worcester, will be able to find alternative sources of revenue.

Moving the city museum and gallery into the Guildhall would, he said, secure the future of both city assets.

The council leader said there were three long-term underlying reasons behind the city’s financial woes.

He blamed years of underfunding by successive Governments, an ever-increasing number of services councils are obliged to provide, and a legacy of providing major county town services despite having a relatively small number of council tax payers to fund them.

“It’s what I call ‘county town syndrome’,” Coun Geraghty said. “People come to Worcester from outside the city and expect arts and museum provision, a vibrant riverside, they drop litter which we have to pick up.

“All this places a financial burden on the council - but we are not given the revenue to fund it.”

City chief executive David Wareing said the cuts are likely to mark the beginning of a fundamental in the way the entire council operates.

“We need to change the whole direction of the council over time,” he said.

“We need to become a smaller organisation which commissions and enables services, rather than providing them ourselves.”