HOUSEHOLDERS in Blackburn and Darwen face an inflation busting 5.6 per cent increase on their council tax bills from April.

But for the first time in many years town hall chiefs have been able to set a budget that involves no significant cuts and actually sees millions of pounds of extra spending in many areas.

The increase is slightly above the 5.5 per cent rise in the county council's share of bills in the rest of East Lancashire, and is above the 2.5 per cent level of inflation.

Two thirds of residents in the borough, who are in council tax band A, will see their tax rise £34 to £643.

The first town hall budget of the new millennium will see £6.7million extra spent on housing, £4.5million extra on regeneration and £2million extra on education.

Government spending targets on education have been met in the budget and there is also the promise of an extra £2.4million from the Department of Education adn Employment's standards fund.

Other areas are also benefiting with a two per cent increase in committee budgets across the board.

Finance committee chairman Coun Gail Barton said: "This is a modernising budget which has been prepared to allow greater flexibility and more innovative working and takes into account known government policies so we have the cash available when the programmes are announced.

"Having been financially prudent we have been able to accumulate balances of £7.3million, some of which will be used to improve our services to local people.

"We are also investing heavily in education where huge advances have been made in the short time we have been a unitary council.

"As well as beacon status, the education action zone is continuing to show excellent results and all areas of the service are delivering major improvements.

"But we are not complacent and we know there is always room for improvement as we continue to work hard to provide value for money services for all local people."

Conservatives and Liberal Democrats are likely to set their alternative budgets when the full council meets to rubber stamp the ruling Labour group's plans.

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