Community groups fear they could be forced to find new places to meet when a council ditches its discounted room hire rates.

The Vale of White Horse District Council has decided to phase out its discount scheme available to 58 community groups who rent Wantage Civic Hall and Abingdon's Guildhall.

Over the next three years the discount will be cut from 50 per cent to try and save money.

Increasing financial pressure means the council wants to run the two loss-making venues more cost-effectively.

Wendy Barratt, who runs Abingdon Breakaway Club, a social club for people of all ages, said: "Some of our members like to play bingo which means we would not be able to use some church halls because they do not allow gambling.

"Forty three other groups in Abingdon are also going to be looking for venues. We are in a really sorry state."

Peter Smith, of Icknield Way Morris Men, said: "We like the Civic Hall because it's central and has good car parking, and we are a Wantage based group. If the cost goes up we might have to look for alternative venues."

From next April, 58 groups eligible for the community group discount will no longer receive a 50 per cent reduction.

Currently, it costs between £10.50 and £42 an hour to rent one of the 10 rooms across the two venues.

The discount will fall to 30 per cent on April 1, 15 per cent from April 2010 and then zero from April 2011.

Neil Townsend, pastor of Wantage Community Church, said: "It would mean our community would suffer." Councillors will write to all community groups on October 1 notifying them of the changes.

A council spokesman said: "Both the Civic and Guildhall are run at a loss to the council which is met by council tax payers.

"The phased removal of the community group discounts attempts to reduce this deficit."

This financial year it will cost the council £785,410 to run the two venues, with an income of just £228,710.

The spokesman added: "We understand this phased reduction and removal will have an impact on the groups eligible for the discounts.

"For this reason we are talking to both Abingdon and Wantage Town Councils to try to provide more locally focused assistance."

The council originally planned to introduce the changes from April this year, but the move was suspended for a year after a council meeting in February.