GOVERNMENT funding cutbacks have left West Wiltshire District Council over £800,000 short for next year's budget.

The council has been forced to try and find ways to save money to avoid a huge council tax increase in 2004/5.

Council leader Tony Phillips said: "It is a grim situation. It is very worrying as it affects everyone."

The Government's new caps on council funding means it has withheld £800,000, making the council one of the top five worst hit in the country.

The council has carried out a review of services and managed to scrape back £450,000, but some of the shortfall will have to be covered by a council tax rise.

Cllr Roy While, the council's corporate portfolio holder, said: "We are very conscious of the burden of council tax and the affect it has on peoples' budgets.

"At the moment what we are hoping is that we can contain the increase to a figure between four and five per cent."

Wiltshire County Council is also being forced to look for ways to curb spending or face being called in by the government to have its budget capped.