TWO million pounds is to be slashed from the district council's budget as part of cutbacks which will see "major reductions" in leisure spending.

At least £1 million will be cut during the next financial year under proposals agreed by Wyre Forest District Council's executive committee.

A further £1 million will be axed in 2003/04.

And the leader of the council Mike Oborski warned avoiding compulsory redundancies would be "extremely difficult."

He said: "We have got to take tough action because if we do nothing the council is on course to spend £2,697,150 more in 2002/03 than we are collecting from council tax in the current year."

He said Government initiatives such as "best value", which requires local authorities to aim for economic and efficient services, were costing the council £250,000 a year while the annual grant settlement was £200,000 less than the amount needed to keep up with inflation.

He added the last straw had been the cut in interest rates following the economic slowdown and the September 11 terrorist attack which would cut £500,000 from earned interest.

Mr Oborski said: "Every department is being examined in detail in order to see what savings can be made without damaging services. Leisure services take up such a large part of our budget that to make any impact whatsoever on spending levels there will have to be major reductions in leisure spending."

He added he was still aiming to keep the increase in council tax below the 7.9 per cent proposed by Worcestershire County Council and the cuts would not affect efforts to secure a cinema for the town.

And he revealed trusts could be set up to take over The Glades, Stourport Sports Centre and other leisure facilities in order to save money.

Councillor Jamie Shaw, leader of the district council's Labour opposition, said: "We accept there are a number of difficult choices to be made."

But he said the decision by the council to approve an extra £100,000 a year in members' allowances had not been supported by the Labour group.