COUNCIL Tax in Wyre Forest looks set to rise by no more than five per cent next year, in line with this year's increase of just under five per cent.

The district council's executive committee due to meet tonight will be told of the need to cut expenditure currently running at 34 per cent above the Government's standard spending assessment.

Keith Bannister, head of finance, says in the report: "The council, like many other local authorities, continues to face severe financial pressures, managing to break even next year, but finding difficulty in providing resources for new projects. The annual level of funding continues to be eroded."

He said the authority had reserves of £1.5 million and projected savings of about £1 million to help with the 2002-2003 budget shortfall.

But he warned the council would be spending £2 million more on existing policies in the year ahead than could be raised from Council Tax.

"While the council has reserves to draw on in setting the expenditure levels for 2002-2003, the council's future projected expenditure levels are unsustainable in the medium term and must be addressed as part of the council's finance strategy."

Members of the committee will discuss the budget and policy framework for the next financial year.