VICARS, churches and services could be among casualties of a financial time-bomb facing the church in Herefordshire.

From parishioners to the Bishop's office, church members are waking up to the fact that 'radical and painful' changes are required to safeguard the Diocese of Hereford.

The crisis is the result of rising costs as salaries, pensions and the upkeep of churches far outstrips income from donations.

Diocese spokeswoman Anni Holden said: "We are living off our reserves. We are looking to 2005 when we will have no money left."

With just over £200,000 left in the bank, church leaders know they have little time in which to turn things round. A series of consultation meetings put the problem to all 14 Deaneries in Herefordshire and south Shropshire and asked them to come up with solutions.

Financial secretary Gordon Powell said: "Cutting staff levels is part of the consultation period. But we feel we are one step ahead of the problem by putting these things in place now."

The problem Deaneries are being asked to solve revolves around rising financial demands on each congregation, known as 'parish share'.

Parishioners are being asked to pay up to 10 per cent more year on year for their clergy and the upkeep of church buildings. While the problems are nationwide, Herefordshire faces some specific issues with a huge number of church buildings spread over a sparsely populated county.

Preb. James Butterworth, Dean of Abbeydore said: "When you are trying to spread yourself like butter over a thinly populated area you realise that some of the things that are expected of the church have to be reviewed. By 2005 some specific and radical changes will have to be considered. Some will be painful and some difficult. I do see some church buildings closing down."

Urban areas are finding salary demands impossible to meet. Hereford City Deanery, with nine stipendiary vicars, is bearing a financial burden it cannot meet at present.

Rural Dean for Hereford, Rev. Andrew Mottram, said: "Some of us are looking at redundancy unless we get the giving right. We have to increase income, or cut costs."

Mr Mottram said: "One of the things that has come out of the process is that as people pay more and more for their ministry they want more change. It is a case of he who pays the piper..."

Changes Deaneries will be considering include raising marriage fees, using churches, such as Hereford's All Saints, as public meeting places and accessing national funding sources and grants such as Gift Aid and lottery funding - also using more part-time clergy and lay priests.

Church of England guidelines talk of people giving up to five per cent of their annual income to support their church.

Rural Dean of Leominster, Rev. Peter Swain said: "Often people's mentality is 20 years old, putting 50p on the plate. People have a responsibility to help maintain the church. We are talking about stewardship."

Dean of Kington and Weobley, Rev Paul Tarling said: "In this Deanery we have had very little problem with parish share. There will be change but I see it as an exciting and positive time."