THERE is a housing crisis in Worcester because the local authority is failing to help provide enough cheaper homes, according to opposition councillors.

Worcester City Council plans to help build 77 new homes each year despite an in-house report saying 335 new affordable homes are needed every year to avoid meltdown.

Opposition councillors are angry that a proposed motion to invest an extra £2m into affordable homes over the next three years was rejected by the ruling Conservative group at a meeting to approve the budget.

The extra money was seen as too risky because it would come from any future profits.

Labour councillor Roger Berry said: "A new report on housing need in the city shows there to be a need for 335 housing units required each year - yet there are only plans to provide 70 per year.

"It is a disgrace and a tragedy for the growing number of households who need rented housing.

"The problem is extremely serious. We have neglected housing - a first rate city does not neglect people who need homes.

"The authority does nothing to provide social housing. It is a moral issue, We can either blame the Government or do something about the problem ourselves."

There are 2,581 people currently on the waiting list for a house in Worcester.

Affordable homes are classed as ones below market value. The houses cater for people who cannot afford to buy a property on the open market, homeless people and 'key workers' such as nurses.

The extra £2m proposal was rejected because the council said it is not enough to deal with the problem and would be a risk to the budget.

Council leader Stephen Inman said: "It is our objective to increase affordable housing, but our financial abilities are limited.

"Quite honestly our financial resources are totally inadequate to deal with housing issues of this kind.

"A further problem is one of land ownership.

"Where do we actually build all these homes? We are up against it and Worcester is not alone in this. It's a substantial problem."