A GOVERNMENT "mistake" could leave Worcester City Council facing severe financial difficulties next year.

The Government announced it would increase the council's grant by 1.98 per cent when the council had anticipated an increase of 3.3 per cent.

"How we'll manage I really don't know," said Councillor Mary Drinkwater

Councillors claimed the Government must have made a mistake because a floor had been set of a 2.3 per cent increase for all district councils.

The Government did increase the amount of money the council could spend at the meeting of the executive board on Monday December 17.

Slight of hand

"We were expecting an increase of 3.3 per cent but, by slight of hand by the Government, we have been given 1.9 per cent," said Grahame Lucas, chief finance officer.

He said he had written to Stephen Byers to point out the mistake.

But even if the increase had been kept at the floor level of 2.3 per cent, it would still be "woefully inadequate", Mr Lucas said, and would force the council to either cut services or charge more for them.

The Government cut local authority spending by £1.3bn nationally when it transferred responsibility for post-16 education to the Learning and Skills Council.

But despite the fact the sector had always been funded by the county council, £20m nationally was stripped from so-called shire district councils. Worcester City is £97,000 worse off.

"I firmly believe our increase should be 3.3 per cent," Mr Lucas said

"We have yet to hear anything from the local government association and I am waiting with bated breath."

Councillor Stephen Inman described the 1.9 per cent increase as "perverse."

"Why should council tax payers have to pay more to let the Government off the hook?" he said.

"How on earth are we going to make ends meet?

"There is no way we can spend our way out of trouble."

Councillor Francis Lankester claimed this was the second time the Government had blundered following the Wyre Piddle Bypass error in the council's grant.

"One time looks like an accident, but twice is careless and looks like incompetence," said Coun Lankester.

The council is waiting for Government response to the letter to resolve the problem and find out how much they would receive in grant.