COUNCIL house and garage rents in Pendle could rise by 3.9 per cent from April if provisional figures are agreed.

The rise is in line with government figures and would go most of the way to meeting a forecast £310,000 shortfall in housing funds next year, councillors were told last night.

Councillors are to carry out a "root and branch" review of proposed cuts in spending and investments in new and improved services to balance the books after being warned the authority faces a possible £1.2million deficit in 2000/2001.

Pendle Council's estimates sub-committee was given four options from the management team of senior officers and councillors for Pendle's share of the final council tax bill.

They ranged from freezing levels at this year's figure, with savings of almost £550,000 needed to balance the books, to an 8.4 per cent rise, or an extra £8.70 a year for people living in Band A properties worth less than £40,000, which would mean cuts of £245,000 but would also allow investment in services.

The management team recommended councillors to opt for a package that would mean a 6.5 per cent, or £6.71 a year, rise in Band A tax bills, with £308,000 worth of savings to be found.

The sub-committee agreed all four options, and any others the political groups may draw up, should be examined before making a final decision.

The only investment safeguarded is £20,000 on installing CCTV security cameras in Nelson. Whatever rise Pendle agrees, it will not be the final tax bill for local people.

Pendle's share of the total tax haul is just 16 per cent with the rest being set by the county, fire and police authorities. The final figure will be announced early next year.

Councillors also agreed to freeze Pendle's grant aid to town and parish councils from April at this year's level.

A Tory proposal to stop all grants was defeated after the Liberal Democrats argued volunteers on parish and town council did invaluable voluntary work and provided services such as play areas and village halls that would otherwise have to be provided by the borough.

All figures are provisional until the Government announces its final grant package for county and borough authorities.

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