SCHOOLS and social services will get the full increase in funding that the Government decrees.

That's the promise of town hall bosses, who have drawn up a three-year financial strategy.

They say that any annual increase in Standard Spending Assessment for these departments will be "passported" directly into their budgets.

The council will also seek annual efficiency savings of two per cent, and increase its minimum level of reserves by inflation plus 2.5 per cent.

Increases in council tax will also follow whatever national average rise is assumed by the Government.

For next year, provision will be made for pay increases of 3.5 per cent.

However, bosses also warn of budget pressures. These include extra insurance resulting from the September 11 attack, pressures on the social services budget, increased national insurance costs imposed by the Government, and replacing £2.1 million of one-off savings which were used to balance this year's budget.

Councillor Wayne Campbell, deputy council leader, said the strategy would set down ground rules for members and officers to follow.