TOWN Hall coffers will have to be raided to meet the cost of employees' pay increases.

Bury Council is having to find an extra £400,000 after ACAS brokered a deal to give staff a larger than expected rise.

Bury had budgeted for a wage hike of three per cent, but say the deal on which unions are consulting their members works out at 3.55 per cent.

The pay proposal follows a lengthy dispute which saw local authority staff across the country go on strike.

Members at the latest executive agreed to accept the proposed rise, subject to the unions doing likewise.

Councillor Wayne Campbell, deputy council leader, described the disparity as "a major area of concern".

He added: "It will have to be found from savings elsewhere in the budget, and it will have an impact on the budget for coming years."