A DRAFT version of fresh city council spending cuts is forecasting big decreases in government funding which goes towards paying for Worcester’s services.

Worcester City Council could, in a worst case scenario, see a key part of a cash grant it gets from the Government slashed by up to 40 per cent.

If that were the case, city council finance chiefs would need to find an extra £3.25 million in budget savings by April 2018.

The council has already cut £6 million in the preceding four years. The city council is in charge of services such as bin collections and street sweeping.

Even in a best case scenario, the council will have less money to spend on services than originally forecast, according to council leader Councillor Simon Geraghty and finance chief Coun Andy Roberts.

It is not known in which areas cuts would fall, but more contracts going out to tender looks likely.

But Coun Geraghty wants to avoid a raid on the New Homes Bonus money – currently set aside for economic growth projects, to plug any gaps.

He said: “With council services, we want to ask who’s best placed in the marketplace to provide those services.

“Our agenda on commissioning services was set out 18 months ago, and that agenda now needs to move forward at some pace.”

Coun Roberts said even with the cuts the council could “do essential services, and continue to do more developmental work for the city”.

Coun Geraghty said “three key changes” were being factored into council calculations; the “impact of the recession on council income” – for example council car park takings are down nine per cent, a further cut to government funding and the council’s aspiration to ring-fence new homes bonus cash.

In a proposal of the council’s next draft budget and five-year spending plan, released yesterday, there is an assumption there could be a reduction in grant money the council gets from government of up to 40 per cent, over four years.

But a draft budget has been worked up on the middle-ground assumption the city will only see that grant cut 20 per cent – meaning £2.4 million of savings would be needed.

The council’s work is all based on assumptions, be-cause the Chancellor of the Exchequer George Os-borne’s autumn statement, which tells councils how much cash they will get, is not due until December.

The council has not been told by government how much money it will get from business rates repayments, or how much cash it will need to balance the new council tax support payments system.

Business rates form a large part of the council’s net operating budget. How-ever, the council does at least know it will have next year’s council tax freeze paid for.

Coun Geraghty said: “We have an excellent track record of reforming services and protecting frontline services.

“Now this [draft] will go out for debate [by cross party committee] and the agreed budget comes through in February.

“We will know much more of the detail after the Chancellor’s announcement in December.”

The capital budget, which is the cash used for items such as fleet replacements and building improvements such as refurbishment of the city crematorium is being forecast at £20 million over the five-year period.