FUNDING cuts, increases in council tax and car parking charges, could be on the cards for Waverley residents, as the borough council struggles to plug cash shortfalls.

Still reeling from the council tax hikes of last year, residents across the borough could face further increases next April.

The disturbing news was revealed this week as the first drafts for next year's budget were reviewed by Waverley borough councillors.

Problems faced by the Lib Dems, who gained control of the council in May of this year, have been blamed on potential cuts in government funding coupled with the introduction of new legislation that must be implemented - including expansion of the waste-recycling programme and investment to support homeless people.

Organisations, including the day centres at the Brightwells Gostrey Centre in Farnham, Haslemere and District Age Concern, Meals on Wheels, and Citizens' Advice Bureaux, could see their grants frozen or reduced.

The total sum set aside by Waverley to meet demands from these and other community organisations is expected to remain at the same level as last year, possibly without even allowing an increase for inflation.

A reduction in the amount of budget set aside for community services of £800,000 has also been predicted, in order for the council to restrict potential increases in council tax.

But the council's own Locality Offices, which provide information and customer services, are not expected to lose out in the budget.

Funds allocated to the offices in Farnham, Haslemere, and Godalming have more than doubled in the latest draft figures from £12,300 in support costs provided this year, to £27,170 for the new financial year.

A Waverley officer explained that an increase in the number of customers using the locality offices has led to the need for a greater financial commitment.

Commenting on Waverley's financial situation, deputy leader of the council and portfolio holder for finance, Stewart Edge, said: "I must stress that the draft budget is at a very early stage and I expect the proposals to be subject to many changes before any final decisions are made."

But Mr Edge confirmed that possible increases in council tax, car parking charges, and use of the council's reserves are options that would be considered in order to "plug the gaps".

The possible increased car parking charges will come on top of the recent decision by the Lib Dems to raise the costs of car-park season tickets from December of this year.

Assistant director of finance at Waverley, Graeme Clark, confirmed that the budget drafts are expected to be scrutinised and changed during a thorough review process before the budget is set in February.

Further adjustments, Mr Clark continued, will be made when the council has heard how much will be awarded in its formula grant announced by the government in December.

Mr Clark said: "The council does have reserves that can be drawn on but it is important for us to maintain them at a sensible level. We must plan for the future."

At present, the council's reserves stand at £3 million, its net annual expenditure is in the region of £12 million.

The council is advised by the district auditor to keep its reserves to a prudent level, the current level of reserves was approved in the auditor's report for the last financial year.

Meanwhile, Mr Edge also admitted that there is "great uncertainty" about the council's financial position in relation to housing following the government's decision to cut the grant supplied to Waverley to fund affordable housing schemes.

Government funding of £2.8 million for the council's Local Authority Social Housing Grant (LASHG) was cut at very short notice, and the government's proposals for all sales from Waverley's council housing stock to be pooled into a national pot, have both had a major impact on the amount of cash available to Waverley for its housing budget.

Plans to build some 81 new homes in Waverley - including six in Badshot Lea, may now be scrapped, while schemes that had been considered for the future could be in jeopardy.

Mr Edge said: "We will have to review where we stand and will be holding meetings with councillors and officers to find the best possible solution to these problems for the people of Waverley. Until these issues have been resolved we cannot make any firm predictions."