CASH given to town and parish councils from the borough has been slashed - with the worst hit authority losing 97 per cent of its grant.
Colchester Council is set to give each local authority a £500 revenue grant for 2013-14, regardless of size.
The cost to Colchester Council will be £14,500, down from £101,900 this year.
Part of a money-saving move after the government grant to the borough council was cut, the decision has been approved by a senior councillor but will be voted on by full council in February when it approves the overall budget.
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