BURNLEY Mechanics will be partly closed to save cash as Labour bosses hit Burnley with a triple-inflation council tax rise.

The decision to run down the flagship arts and entertainment centre into a weekend and evening only venue to save £90,000 a year was announced last night as councillors decided to increase Burnley's share of the council tax bill by 7.9 per cent -- and increase the amount councillors are paid by 70 per cent a year.

But combined with the much smaller 3.5 per cent rise announced by Lancashire County Council, whose demands make up the lion's share of the overall tax demands, Burnley householders will be paying just 4.5 per cent more than last year.

The average band D taxpayer will get a bill for £1,043 in April, but the vast majority of householders, living in terraces worth less than £40,000, will pay £695.

Council bosses still have to find £340,000 savings to balance the books and full details on how they will do that will not be announced until next week's full budget meeting. But Labour leader Stuart Caddy gave an indication of what was to come when he announced today:

The Mechanics will be partly closed with the tourist centre moved to a new office and Mechanics staff re-deployed.

The under-threat Gannow Baths will remain open and there will be help to keep the town's after-school playschemes open, despite the town's financial crisis.

Labour chiefs have decided againstwon't introduce admission charges to Towneley Hall, but a staffing shake-up at the bus station toilets will save £30,000.

Despite what Labour bosses have described as the most difficult budget year in memory, they still voted themselves a 70 per cent pay rise at last night's policy committee -- with councillors expenses and allowances rising by £36,000 in a full year.

Coun Caddy's own pay as council leader will rise from the present £2,400 to £5,400.

Finance chairman Peter Kenyon said overall tax demands would mean that 96 per cent of householders would have a council tax rise of less than £1-a-week this year.

The two thirds of all householders living in Band A properties would pay only 50p a week more.

Coun Caddy said that despite all the difficulties, Labour had achieved its targets of protecting jobs and services in the town.

But main opposition spokesman Harry Brooks said the triple-inflation rise in Burnley's share of the rate meant householders were now paying he price for Labour's incompetence in the 1990s.

He added that all the backtracking on threatened service cuts had been forced on Labour by public pressure.

Even before last night Labour chiefs had cut back budgets by more than £500,000 and raided bank balances to the tune of £400,000 in a desperate bid to balance the books.

The crisis had been forced on the town by Government demands for Burnley to foot the bill for new services, but mainly by a cut in Government financial support following an assesment that Burnley's population had fallen.

What Burnley householders will pay in council tax this year.

Band A (up to £40,000) - £695.61; Band B (£40,000 to £52,000) - £811.54; Band C (£52,000 to £68,000) - £927.49; Band D (£68,000 to £88,000) - £1,043.42; Band E (£88,000 to £120,000) - £1,275.30; Band F (£120,000 to £160,000) - £1,507.16; Band G (£160,000 to £320,000) - £1,739.03; Band H (Over £320,000) - £2,086.84