THE "black hole" in the city council's budget is mainly due to the Labour Government and previous Labour council.

The Government has imposed costs totalling £560,000. Additional are costs also beyond the council's control, such as increased insurance premiums and the pensioners' bus pass, are at least £400,000 more - all on a budget of only £11m.

In their last year of control, Labour were forced to introduce the Medium Term Financial plan. This predicted a £600,000 deficit for this year. So Labour admitted there was a problem. The Conservatives now have to sort it out.

Since 1998, the Swan's basic council grant has been £54,000. Four years ago the council agreed an extra annual grant of £85,000 to help the theatre out of its then difficulties.

Earlier this year, the Swan management asked the council for an extra £27,000 because it had an unexpected deficit. That would make £110,000 above its base grant just to get through this year.

The Swan's consultants' report suggests that it will need more money on top of this to manage next year.

The council has spent £332,000 from its reserves to give the Swan extra money. Now there is little more to give.

The Labour-inspired Medium Term Financial plan states that the council must stop using the reserves to pay for services by the end of this year. The District Auditor agrees. So the Swan's extra £83,000 must either stop, or go into the base budget.

Some £83,000 of services would be cut to make way for the theatre's additional grant. We are talking about vital services like environmental health inspections, bulky waste collection, street cleaning and the pensioners' concessionary bus pass.

Both the city council and the Swan have financial crises. I ask the Swan's supporters to understand the very hard decisions that councillors must take.

We would like to give the Swan all the money it needs. Worcester deserves first-rate arts provision. But as councillors we must defend vital public services. Because of the Labour Government and previous Labour Council, we now have to choose between these services and the Swan.

COUNCILLOR FRANCIS LANKESTER, Worcester.