Dozens of charities have had their grants frozen by Winchester City Council.

The council supports five "key clients" who get most of the £506,000 pot for community groups.

But all requests for extra cash were turned down this year. Instead a "standstill budget" has been agreed.

Winchester Area Community Action wanted £102,375 - but it will get £100,465; Winchester Citizens' Advice Bureau asked for £130,338 but it will get £127,158 - and Bishop's Waltham CAB wanted £41,835 but will have to settle for £40,615. The city's Trinity Centre, which wanted £93,400, will get £86,100 while the £33,825 agreed for the Hat Fair was much lower than the £55,016 requested.

However, it turns out that it's no less than the organisers of the city's street theatre event had been expecting.

After the cabinet meeting, Fair director, Sian Thomas, said: "I always ask for more because that's the actual cost of running the Hat Fair - but £33,000 is about what we have had for the last three years.

"The city council supports the Hat Fair really well and I understand that its money goes in a lot of different directions.

"I wouldn't want the Hat Fair to get more money at the expense of another charity. We also receive funding for the Arts Council and we are lobbying Hampshire County Council for funds."

Brian Collin told his fellow councillors that the authority had to act prudently as it was proposing the lowest council tax increase in years at 3.5%.

"I am very grateful to many of the voluntary bodies who have had to tighten their belts quite a bit this time because they are still subject to inflation and have to work hard just to standstill."

One of the few charities to gain was Winchester and District Savers, which is setting up the first credit union in the area, offering cheap loans to those on low incomes.

It will receive a £15,000 grant to kick-start the scheme but it is expected to be self-funding in future.

Nearly 30 different organisations are to get grants from the community revenue budget, including the Nightshelter, Carroll Youth Centre, Home Start Meon Valley and Tower Arts Centre.

Grants for capital projects were also agreed.

They included £10,000 for the Colour Factory - to convert a former caretakers' cottage at River Park Leisure Centre into an arts centre.

The total cost of the project is £120,000 and they asked for £50,000. A further £10,000 has been promised next year.

Capital grants were also awarded to Swanmore Methodist Church - £10,000; Droxford Community Hall - £8,000; Denmead Memorial Hall - £3,340; Victoria Hall, Sutton Scotney - £6,000 and Winchester Lido Sports Association - £3,000.