COMMUNITY leaders holding the purse strings in Droitwich Spa have a taxing time ahead.

Wychavon District Council is gearing up to set its percentage of the council tax for 2003/2004.

This year Government chiefs have changed the system for allocating the share of grants and business rates needed to fund local authority services.

A statement from Wychavon District Council says: "As usual the figures are almost impossible to understand."

Westminster adjusts the current budget by examining how much they believe Wychavon needs to spend.

The Government then decides what percentage of grants and business rates the authority should receive and leaves it up to local members to produce a budget.

Using the new method, spending needs are up from £10.6m to £14.6m and grant spending is up by 6.3 per cent - or £378,000.

However, council managing director Sid Pritchard says taxes would have to double if the authority spent at the top level.

"When you look at the figures in pure cash terms the picture gets worse," he told the Advertiser.

"While the assessed need to spend is increased, reflecting the costs of providing services in rural area, actual support from grants and business rates has only risen by 2.86 per cent.

"Fortunately we thought we would only get 2.5 per cent so we are £22,000 better off - hardly a significant factor when our assessed spending is £14.6m - although we only spend £10.6m to deliver good services." Wychavon leader, Tory councillor Malcolm Meikle (Elmley Castle), said the authority aims to increase council tax by no more than 2.5 per cent.

"However, the impact of the changes on Worcestershire County Council and the police levies, which we have to collect, are likely to outweigh the restraint shown by Wychavon," he added.

Labour councillor Peter Pinfield said the Government's new formula gives councils a better base to work from.

"Wychavon must be open to change and then it will gain from new initiatives and grants now available.

"Unfortunately the council is very politically led and has criticised Labour government from day one.

"Sadly it's the taxpayers who lose out," he added.