The council has revealed it is closing in on a £2.5 million savings target to help reduce a worrying hole in its budget.

Worcester City Council has set itself a savings target of £2.5 million to be reached by 2027 as the cash-strapped authority battles with rising costs and inflation to balance its budget in the coming years.

At the start of the year, the council warned of job losses and further cuts to services with a worrying gap in the authority’s budget expected to rise to at least £4m in the next five years.

The council is nearly 90 per cent of the way towards reaching the £2.5 million target having agreed on a raft of measures to either save money or bring in more cash to help reduce the gap in recent months.

The council has found nearly £2.2 million of savings and potential money earners to boost income, including £376,000 since September, and sees nearly £1.5 million as “achievable.”

Decisions over services already made, or soon to be made by councillors, would save around a further £283,000.

These decisions have included introducing an entrance fee for the previously free Worcester Show, a steep rise in the cost of hiring an allotment and reducing the operating hours of fountains in Cripplegate Park and South Quay next to the River Severn.

A ‘draft’ voluntary redundancy scheme would currently save around £448,000.

Based on current estimates, more than £250,000 would have to be saved between 2025 and 2027 to reach the £2.5 million target.

Councillor Lynn Denham, joint leader of Worcester City Council, said the cost-cutting measures had shown a “firm determination” to get the council’s finances in order but warned of further financial challenges.

“The impact of the rise in inflation has not just been on households but also on local councils like ours,” she said. “In 2022-23 the council had to draw over £400,000 from risk reserves to balance the budget. In the current financial year, over £1.7m had to be earmarked from reserves to balance the budget. This is not a financially sustainable position in the medium term.

“Making savings of this magnitude is never easy and I would like to thank my fellow councillors for their commitment and support in delivering this vital savings plan, and the council officers who have worked so hard to identify potential savings.

“Achieving the £2.25 million savings target ensures we can continue to provide essential services in 2024-25.

“Residents expect us to be able to continue clean the streets, empty bins, provide housing services, process planning applications and much more. The challenge now is to look ahead to future years.

“Inflation is still high and there will be more financial challenges to be faced.”