COUNCILLORS clashed as Burnley's budget debate descended into a "racist" row.

Finance chairman Peter Kenyon slammed critic Harry Brooks who said the people of Burnley did not want to spend on an expensive "Labour propaganda" public relations set-up, or the translation and interpretation service or an equal opportunities bureaucracy, nor to pour money into a racial equality council.

And he sparked uproar when he said of the Independent group leader: "He is one of the most right wing, possibly racist, people to set foot in this council chamber."

Coun Brooks hit back: "To suggest I am guilty of racism is one of the most unreasonable slurs that someone can make."

Mayor Eric Selby was twice on his feet calling for calm and warning that he would take severe action if there was no immediate return to ordered debate.

In his budget speech Coun Kenyon said the council had benefited from the most generous government finance settlement since council tax was introduced and Labour had kept its promise to remove the shackles of cash capping on councils, allowing Burnley the flexibility to increase its budget to safeguard jobs and improve services.

The town's council tax would rise by 7.8 per cent - mainly due to county council demands - but Burnley's own proportion of the bill had been held to the Government guideline of 4.5per cent. The 5.25 per cent rent rise for council house tenants was higher than the council wished, but there were compelling reasons for doing so.

Coun Kenyon outlined major spending proposals and said the authority had managed to avoid all redundancies - dispelling fears that 50 jobs could go.

He said the council had struggled to balance conflicting priorities in a difficult year.

But opposition leaders slammed the budget.

Liberal Democrat Gordon Birtwistle said it would be impossible for many people to pay the thrice-inflation tax rise and crippling rent increase.

"Many people in this town will be lucky to get any pay rise this year, yet they are being hit by increases like this. It is appalling."

Coun Brooks said the budget proposals were riddled with unacceptable items and represented the poor efforts of a Labour majority group which hadn't the competence or integrity to run an efficient and honest council.

Coun Kenyon, in response, resorted to Shakespeare.

The attacks, he said, were simply "sound and fury, signifying nothing" and containing not a single positive proposal.

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