Council tax rise likely to be 5%

A disappointing grant settlement for Burnley Council from the Government last year sparked fears that tax payers would be facing a steep rise in their council tax bills.

Council bosses had been expecting around £9.7 million from the Treasury, but in November it was announced that they would get £600,000 less.

In December the Government provided a extra £200,000, reducing the authority's deficit to £400,000.

Now, finance director Nick Aves has revealed that the council is aiming to keep the increase in Burnley's share of the council tax to around 5 per cent.

He said: "We were aiming for a 5 per cent increase but the Government threw a real spanner in the works when it announced the grant settlement.

"We had to go back and look through all the various services in the budget and identify areas where cuts could be made."

The council's recent decision to close Gannow Pool as part of its review of the borough's leisure facilities is one of the main cuts to be made in services.

Savings will also be made at Towneley Hall, which is to reduce its opening hours through the winter due to a fall in visitor numbers.

And the current review of senior management positions is also likely to help generate savings.

Mr Aves said: "Overall we have managed to come in with a reasonable council tax increase, with the minimum possible impact on jobs and services."

The Government has threatened to cap local authorities trying to make big increases in council tax and has even written to some councils warning them that it will take action. But Burnley Council has escaped any such threats.

Mr Aves said: "I think we have avoided getting a letter from the Government because we have been able to give them indications that we would be keeping the increase down to 5 per cent."

The details of the budget will be announced at a special meeting of the executive committee on Monday, February 16.

The budget will then go before the full council on Wednesday, February 5.