Council faces a year of debt

The authority is preparing for a £15 million shortfall in its £258 million operating budget when the Government announces its annual revenue support grants this month.

Ministers faced criticism last year for favouring the Labour-supporting North over the "affluent" South when dividing up the billions of pounds given to councils to fund schools, social services and housing.

Despite this year's 14.5 per cent hike in council tax, which took the average bill in the city above £1,000 for the first time, the authority is expecting another multi-million-pound hole in its budget next year.

Chief executive David Panter has already been praised for shaving £6 million from the annual spend.

A series of meetings has been planned among top officers to come up with further ways of reducing expenditure.

Further council tax rises of up to ten per cent appear inevitable.

Councillor Brian Oxley, Tory leader on Brighton and Hove Council who sits on the powerful policy and resources committee, said: "If the predicted figures are correct, it is outrageous the Government has ignored the all-party representations from Brighton and Hove.

"The Government promised to end the problem of underfunding of local authorities, yet has once again failed to act."

Leader of the Liberal Democrat group Paul Elgood said: "Members of the council are concerned about the situation and how little notice the Government seems to be taking.

"The council has made savings, such as moving out of Royal York Buildings, but there will be more and I am not just talking about the cost of biscuits at council meetings.

"We will have to look harder than ever at cuts and city council taxpayers will have to brace themselves for another rise."

A council spokesman said a final decision would be taken concerning the future budget when the official grant figures were published.

He said: "As a responsible council we always cut the coat according to the cloth."

Monday November 03, 2003