COLCHESTER is set to lose out on days of actions, PCSOs and vital community services after the Government demanded its money back.

The Tory/Lib Dem coalition has told Essex County Council to pay back half of a £26million grant – of which £717,000 goes to projects in Colchester.

The Essex Partnership, which administers the money, has told Colchester to come up with scenarios if 50 per cent or 75 per cent of their slice has to be returned.

Colchester Council could be forced to foot the bill because it has already spent much of the money allocated to it.

Tina Dopson, councillor responsible for communities, said: “We have already allocated and in some cases spent that money.

“We’re trying to take the hit first at Colchester Council to minimise the effect on the voluntary groups.

“That means there are going to be some projects that will now not go ahead and local residents will suffer.

“We can’t deliver it from existing budgets because they have already been cut by central government too.

“We may have to make up the difference from our own resources.”

The Helpmates scheme, which sees the Colchester Volunteer Centre send out people to do DIY and gardening jobs for frail and elderly residents, was given £32,000 and has already been suspended.

Others, including days of action and a family intervention support officer employed by Colchester Council, could follow.

Much of the money, including £56,000 aimed at boosting recycling in Colchester, has already been spent. Mrs Dopson said cutting funding would badly damage the Government’s “Big Society” dream because charities would no longer be able to afford to help people in need.

She said: “This is not a good way to manage what the Government call the Big Society.

“If this carries on, there won’t be any voluntary organisations because this is core funding.”

Mrs Dopson added she was still waiting to hear back exactly how much must be repaid.