Trowbridge Town Council believes it can cope with a grant reduction of £69,245, introduced by Wiltshire Council as a reaction to Government reforms of council tax.

National cutbacks have seen councils get financial support only for homes that do not get housing benefit.

Last Thursday, the county cabinet voted for a reduction of 35 per cent in support grants to smaller councils.

The more homes in a town or parish where the residents get housing benefit, the less money a town or parish council gets to pay for services.

Last year, £1.4m covered the precepts of all Wiltshire’s town and parish councils, but the Government provided only £1.1m in funding, with Wiltshire Council topping up the shortfall.

Due to the cuts made by the Department of Communities and Local Government this year, Wiltshire Council has decided it cannot give out the full £1.4m and a 35 per cent reduction has been agreed.

Lance Allan, Trowbridge Town Council’s clerk, said: “We are obviously concerned that the amount of funding has reduced, but we do recognise the pressure Wiltshire Council is under.”

During a consultation by Wiltshire Council about the reduction – asking how town and parish councils would cope with a 20 per cent, 35 per cent or 100 per cent cut – Mr Allan said it would have been disastrous if Trowbridge lost the entire grant.

Trowbridge plans to discuss its budget for 2014/15 and the implication of the grant reduction in January.

Melksham’s grant has gone from £56,000 to £36,447 and clerk Steve Gray said: “There is a lot of food for thought and the town council needs to think carefully.

“The topic has been earmarked for discussion at full council on January 13.”

Bradford on Avon will now get £21,179.07, down from £32,583 and town council clerk Diane Holmes said: “The town council has decided, regardless of what the grant is, to set the precept so that, if in future years we are capped, we won’t have to worry about the level of top-up from Wiltshire Council.”

Westbury’s grant will drop from £49,255 to £31,996 and a budget by clerk Keith Harvey will go to the finance committee on December 9.

Warminster’s grant drops from £55,028 to just over £35,000, and clerk Heather Abernethie said: “We are looking at everything we possibly can to save money.”