WORCESTER City Council is being forced to cut back on spending or face a £1.1m deficit next year.
Years of over-spending have eaten into the council's reserves and the cabinet has been told it must make savings as it draws up the 2003/04 budget.
It also has to act to avoid a £400,000 shortfall in this year's budget.
A package of cost-cutting measures has been drawn up, including delaying staff recruitment and a cut in building maintenance funding, which is due to go before the cabinet tonight.
If it backs them, they will be implemented immediately.
Labour councillors claim careful monitoring of the budget would have prevented the crisis and fear public services will be affected.
Plans for preventing the £1.1m overspend next year are expected to be on the table by October.
Some services will face cuts, but the Tory administration has pledged to focus funding on making Worcester cleaner and greener.
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