PERSHORE town councillors have admitted they could find themselves in a huge financial hole next year if they are not able to cut about £35,000 from their budget.

As a result of the foreseeable deficit, no local clubs or organisations may be able to receive any kind of grants or town council funding at all in 2010.

The situation has occurred because the council’s income was hit by the recession, meaning once-profitable investments are bringing in less money, leaving the town council with a projected deficit of tens of thousands of pounds.

Town clerk Ann Dobbins said: “We are finding that where once we had an income on our investments and services, we now have none. All councils this year will have some difficult decisions to make.”

Coun Charles Tucker, chairman of the council’s property and finance committee, said that the council’s situation was not unique.

He said: “We are facing a very difficult budget this year because, just like every other council, the recession is hitting us too.

“Our situation mirrors others in that we have a nest egg of investments which supports our budget every year. The loss of the value of some of these, coupled with very low interest rates on our savings, means we have less money. We also don’t have as much in reserves as we have had in recent years.

“It all means we have to be very careful this year and make sure we don’t over extend ourselves. We want to avoid an increase in the precept for taxpayers, protect our assets and treat everybody fairly across the community.”

A meeting is scheduled to take place at the town hall tomorrow from 7.30pm.