GRIM NEWS ON COUNCIL TAX

It contained its tax rise to 3.9 per cent this year and asked the Local Government Association to find out if the Government would be matching the support package that it gave to councils last year.

The association now estimates the national funding shortfall has grown from 1 billion to 2.2 billion and has been informed that the funding will not be continued next year.

As a result, it estimates a national headline tax rise of 10 per cent because of extra spending demands on local councils.

Ann De Vecchi, leader of Lewes District Council, said: 'This is sad news for local communities.

'The Government is likely to set a figure for maximum tax rises in low single figures, while remaining completely silent upon the consequences of its taxation and public spending policies which will put pressure upon discretionary services that local communities value.

'There is concern that the system of support for local government services is at breaking point and the Government is failing to re-invest a fair share of national resources in the South East.

'We now fear the worst and anticipate a cut of 93,000 in the Government's contribution towards our local services next year.

'To make this up would need 1.5 per cent in council tax terms.

'If the Government increased its contribution in line with its own estimate of inflation, we should get 125,000 instead of a 93,000 cut.

'Inflation on our budget will be 333,000 and that is around six per cent in council tax terms.

'We are slowly becoming an administrative arm of central Government, implementing more inadequately funded national policies which reduces the scope for responding to local needs.

'Looking ahead to next year, the proposed change in the national concessionary fare scheme could leave us short by 133,000 alone, which is equivalent to another two per cent on the district part of the council tax.'

And she added: 'In order to keep the books in balance, we are driving forward a three year efficiency programme to find 660,000 cash savings to cover the impact of Government policies.

'We will continue to respond to local needs and to do our utmost to control tax rises but unfortunately there are likely to be some tough decisions to take in order to achieve this, even more if the Government wants us to make savings above this level.

'This situation is likely to be repeated across the South East: it is not unique to Lewes District Council.'