A RECORD £11 million pound investment in Worcester has moved a step closer - with the city council's leadership endorsing its new budget.

The Conservative cabinet has agreed to back its 2016/17 spending proposals, with the leader urging people to be "upbeat and optimistic" about the future.

As we first revealed last week, if accepted in February it will mean a council tax rise of two per cent and a freeze on car parking rates but £11 million towards major projects.

Some of the big-ticket items, the council's biggest ever series of investments in a single year, includes:

- £250,000 towards Gheluvelt Park including new toilets and a cafe for the Splashpad

- £20,000 into replacing street name plates, which we first revealed was likely last month

- £500,000 of 'public realm' improvements focusing on key city centre routes like resurfacing Broad Street

- £439,000 into the emerging plans to transform Diglis including new walking paths and picnic benches

- Another £400,000 into the Cathedral Square revamp, £240,000 towards transforming The Commandery and £8 million for the city's eight-lane swimming pool in Perdiswell

- £65,000 on improving the Guildhall to provide disabled lifts and hard-of-hearing facilities for visitors

The council tax rise would add around £3.21 a year to the average band D property because the council controls just 11 per cent of the bill.

But it would contribute around £100,000 to the authority's coffers if the full council votes it through in February.

Councillor Simon Geraghty, the leader, said he was optimistic about the future despite huge funding pressures.

The £11 million capital spend is part of plans to splash £19.8 million on several major projects between now and 2020, with the majority of that money being used in 2016/17.

Speaking during a cabinet meeting last night, he said: "I'm upbeat and optimistic about the future.

"This is a balanced budget with no new savings reductions other than the ones we've announced previously.

"We're also planning record investments in the city, £20 million over the next five years including £11 million in the next financial year."

He defended the council tax proposal by saying it will add "less than a penny a day" to the overall bill.

"When so many other councils are making cuts, we're in a situation where we are making record investments in the city," he said.

"That's quite a remarkable position to be in."

During the meeting the opposition Labour group focused on the planned private sector outsourcing of bin collections, park maintenance and street sweeping where the savings target has been reduced from £500,000 a year to £400,000.

Councillor Geraghty called it "a judgement call", but called the new figure "a balanced assessment".

Councillor Adrian Gregson, the Labour group's leader, asked for clarity over the future sale of buildings, saying: "I'd like you to remind us what you've got left to sell."

* See our SPECIAL REPORT on the city council's new budget from last week here.