COST-cutting measures to safeguard essential services and prevent higher council tax bills are being considered by Malvern Hills District Council.

The spending review has been sparked by uncertainty over the amount of cash the council will receive from central government next year.

Council leader Di Rayner said it was better to look at areas where savings could be made now, than be faced with panic measures and cuts at the last minute.

"We could be really strapped for cash next year. We have to be ready for anything," she said.

Everything, from senior management salaries to public toilets will be scrutinised.

Coun Rayner said any shortfall caused by a reduced government grant could mean higher council tax bills.

"So we have to have a sensible budget. We have to offer council tax payers value for money," she said

Speaking at an Upton Town Council meeting on Tuesday, district councillor Mary Wilkinson said: "Our finance boys are in a real pickle. They're having to guess what money we'll have next year and so they are making cutbacks where they can."

The district's overview and scrutiny commission met yesterday (thursday) to look at medium term financial planning for 2006-2009. Areas identified for possible cost cutting include pest control, grounds maintenance, rural transport, public toilets and CCTV monitoring.

David Wood, director of resources at MHDC described the scrutiny as part of the normal financial planning process.

He said there was always uncertainty over the precise levels of Formula Grant from the government but that an announcement should be made on December 8.

"We're working to provide a provisional framework from which budget decisions can be made," said Mr Wood.

He said increasing costs outside the council's control meant it was vital to keep finances under constant review.

Recent increased costs facing the council include employee pensions, kerb-side recycling, new compulsory concessionary fares, reduced income from planning and land charges caused by the downturn in the housing market and increased fuel costs because of the current high price of oil.