A PLEDGE by East Hampshire District Council to peg council tax increases to the rate of inflation, currently at 2.5 per cent, without making cuts to services was set to be subjected to close scrutiny when it came up for approval this week.
The four-year financial strategy from 1999 to 2003 was due to be presented to the Policy and Resources committee at their meeting on Wednesday night.
But although the committee was asked to approve budget cuts this year and next in the region of £400,000, with a promise from the Tory leader of the district council that it would place the council "in a much strong financial position and leave sufficient reserves to meet unforeseen events," Liberal Democrats were this week not convinced.
East Hampshire district councillor Tony Ludlow, who was due to speak at the meeting, said he would "wait and see."
"It would be nice to think that the cuts had no impact on services, but impossible to believe," he said.
"If we put council taxes up by four pence a week for the average band D council tax payer, there would be no need for cuts at all," declared Mr Ludlow.
And he maintained that the good management of the budget when they were in control of EHDC had been instigated under Liberal Democrats. He said a review of spending had resulted in removing £6 million from the budget over four years.
Claims made by the Tories before they took over control of the district council in the May elections, said Mr Ludlow, that the district council was sliding towards bankruptcy were "simply untrue".
The strategy drawn up by the district council also aims to reduce dependence on council reserves to meet the cost of services, and to ensure that within four years planned spending will be in line with income raised through council tax and government support.
Overall, the new strategy aims to make savings of £1.6m over the period to March, 2003.
See also Page 8 of this week's Herald




