TAXPAYERS in Droitwich and the district are expected to bear the brunt of Wychavon District Council's £1m government funding shortfall.
Next year's local government finance settlement for the council is nearly £1m down on this year due to a change in government expenditure.
The government has altered the way it supports spending on rent, allowances and council tax benefits.
The Department of Work and Pensions (DWP) had told Wychavon the change would not happen next year. But the office of the Deputy Prime Minister has now confirmed it will.
The council are disgusted the cut to Wychavon's funding was not mentioned when the council's finance settlement was advised and they are now left short of vital funds to prepare next year's budget.
Wychavon's board member for resources, Clive Holt (Con-Harvington and Norton) said: "It is very disturbing that the government operates in such a disjointed and inefficient way. We as a council are instructed by the Audit Commission to plan our services and spending over a five year period and yet the government cannot even organise next year's settlement properly."
He confirmed this would result in a ten per cent shortfall in the council's revenue budget for next year.
Cllr Holt added: "Should we fail to get £1m from the DWP, we will be faced with either stopping rent allowances and council tax benefits or increasing the council tax by 25 per cent plus. Even if this problem does get resolved by the DWP any shortfall below £1m will fall on the shoulders of the taxpayer."
Mid-Worcestershire MP Peter Luff (Con) has written to Local Government Minister Nick Raynsford to find the true level of funding for Wychavon's district services.
He said: "Wychavon appears to have lost a million pounds of government funding. It may be that some of this will be made up by the Department of Work and Pensions as responsibility for housing benefit and council tax benefit is transferred within government - but we don't know.
Appaling
"This is an appaling way to treat councils. Wychavon could have to increase its council tax by 25 per cent unless the government acts quickly to sort the mess out.
"If the government gives Wychavon a fair deal, it will be able to limit its increase to very close to the rate of inflation."
The authority's head of financial services Sonia Rees said: "At first glance we are concerned because a straight comparison of the figures from this year to what the government say we're getting next year is absolutely awful.
"But until we hear from the Department for Work and Pensions, we won't have an overall picture so will remain concerned until we get that information."
She added the unexpected change in rules now makes it very difficult to plan the budget and the authority will need all the information available to assess the impact on next year's council tax.
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