New council budget cuts proposed

If ministers refuse the request, the savings target will rise to almost £30m and require even tougher budget cuts and efficiency measures in services, jobs and charges.

Yesterday executive member for corporate resources, Andrew Tebbutt, said all the indications from Government departments suggested the decision would be a positive one for Northumberland.

The revised savings package includes a 2.8% rise in council tax bills in April - up from the previously proposed 2% - in a bid to avoid 'unacceptable' service cuts.

New proposals include the introduction of parking charges for councillors and staff at County Hall in Morpeth - generating an extra £45,000 - and saving £330,000 by stopping flowerbed displays provided by the county council in towns and villages.

There will also be tighter controls on the criteria for home care for elderly people, a 5p increase in school meals prices and a 10% cut in grants to arts and leisure, instead of the previous 7.5%.

In recent weeks Lib Dem leaders have dropped a number of the initial savings proposed in November, following feedback from the public, unions and staff.

These include closing Ashington leisure centre this year, imposing a pay freeze on 1,600 workers and closing up to 12 branch libraries and five tourist information centres.

Yesterday Coun Tebbutt said the revised package represented the administration's proposals to set a balanced budget this year, and there would now be detailed discussions with opposition groups in a bid to reach agreement.

"The Government decision on capitalisation of redundancy costs is incredibly significant, because we estimate those costs at £10m. Without capitalisation our savings target goes up to £29.9m, meaning some very drastic additional budget cuts.

"We believe that everything we are now proposing is sustainable in terms of service delivery. It will have an impact on people, because when you are cutting £18m someone is going to lose out, but we have also frozen councillors' allowances and are looking to save £150,000 on members' training and special responsibility allowances."

Conservative group leader Peter Jackson said there were still grave concerns about the impact of the proposed cuts on front-line services such as community wardens, public transport and services for the elderly.

"We are happy to talk to the administration about their budget proposals, but we see the future of the council as a much slimmer and efficient organisation in management terms, rather than hitting front-line services."