UNION chiefs have hit out at Chancellor George Osborne’s latest axe to the public sector - saying morale in Worcestershire is “rock bottom”.

Jim Price, from County Hall’s Unison branch, says he fears workers’ plight could get worse after funding to the department which gives grants to councils fell 10 per cent.

Mr Osborne, who outlined the spending plans for 2015/16 yesterday, also said public sector pay would rise to no more than one per cent.

Staff at County Hall have had freezes in pay since 2011 and are about to get a one per cent rise backdated to April.

Mr Price said: “Since the turn of the century our members’ pay has dropped by around 16 per cent, and a one per cent rise now is against inflation of around three or four per cent.

“It’s effectively a pay cut, which goes to explain why morale among staff is so shocking - it is very bad news again.

“The fat from local government went a long time ago and we’re now drilling into the bone.”

More reaction to the Spending Round has been pouring in, with the leader of Worcestershire County Council defending the plans.

Councillor Adrian Hardman said: “We are very interested in the £3 billion George Osborne says will be distributed for joint working on health and social care.

“If you take the general rule of thumb that Worcestershire could get one per cent of that, you’re talking £30 million, which will help deal with the serious demographic pressures we face.

“I would expect the district councils to be hit harder than us - there’s also £200 million for helping troubled families, which we can tap into too.

"From my point of view, this could have been worse."

Other council chiefs said the devil would be in the detail - especially as the Department for Communities and Local Government (DCLG) is some way off confirming exact funding plans for each town hall.

Councillor Paul Middlebrough, Wychavon District Council leader, said: “I can see the benefits of focusing on helping county councils deal with older people and health.

“District councils clearly have to be much more commercially run, and we’re well on that road.”

Peter Luff, MP for Mid-Worcestershire, said: “The really great news is the education funding and the fairer funding formula – there’s a real determination to resolve this issue, which is excellent to hear.

“What we heard yesterday is a very significant step forward, we are beginning to make a breakthrough and as I’ve been involved in this for nearly a quarter of a century, it’s long overdue.

“The defence budget has been cut to the bone in recent years but thankfully we aren’t going beyond that.

There is some good news in this Spending Round for Worcestershire.”

Councillor Joy Squires, Worcester’s parliamentary candidate, said: “‘George Osborne’s announcement of yet more spending cuts is an admission of the failure of his economic plans.”

She added: “One third of Worcester’s jobs are dependent on the public sector – we have many schools, a big hospital and health sector, the county and city councils and other public bodies.

“The squeeze on public sector pay, and inflation far outstripping wage increases, will depress spending locally and in turn impact our shops, pubs and restaurants.

“As demand increases there will be a decline in wages and the use of zero hours contracts, already in evidence in Worcester, will grow.”

Others said it had far more on it worthy of credit, with West Worcestershire MP Harriett Baldwin saying Mr Osborne had a “difficult job” to bring spending under control.

“The Chancellor has a difficult job to get public spending under control to help us reduce the debt that we pass on to our children and grandchildren,” she said.

“However, this spending round emphasised West Worcestershire priorities, which will benefit the area.

“I particularly welcome the news to protect investment in flood defences and to find a fairer funding formula for our schools.

The Chancellor actually mentioned the hard work of my colleague Robin Walker in the campaign for Worcestershire schools.

“I welcome the focus on broadband, science and transport infrastructure and I will be making the case for the Worcester Parkway station and the Southern Link Road.

“There is also further good news for the host of cyber-security businesses in “cyber valley” in Worcestershire with a commitment to increase spending in this crucial area.”

The Spending Round includes £11.5 billion slashed from spending, but protection for school, NHS and defence funding.

As your Worcester News revealed yesterday, it also includes an historic reform of the schools funding formula, which currently leaves Worcestershire 146th out of 150 authorities nationwide for per-pupil cash.

Councils are also being given the offer of freezing council tax for another two years to help hard-pressed families.