Council Tax set for 4pc rise

Staffordshire County Council is aiming to deliver a four per cent council tax rise for 2008-2009.

Its financial strategy for the next three years is based on finding £22 million of savings.

This will enable the council tax rise next year to be kept to 3.5 per cent and three per cent in 2010-2011.

Council leader, Councillor John Taylor, pictured, told a cabinet meeting yesterday that he was in charge of "a well-run authority which is not in financial crisis."

The Labour-controlled authority has been attacked by the Tory opposition for making cuts to care homes and over proposals to sell off smallholdings.

The cabinet approved a finance review to deliver the programme of savings and enable next year's budget to be set.

Director of finance Andy Burns said: "It's not just about being a balanced budget, its also about being a good budget which is in support of the cabinet's priorities.

"The budget needed to demonstrate it meets the priority criteria including delivering services for vulnerable people and addressing climate change.

"It also needed to be transparent."

The report set out plans to cover redundancy payments of £19 million for staff from 14 care homes being axed by the county council in 2008.

There are also provisions to cover a £94.6 million bill for pay reforms which will see many council employees pay packets increasing.

Councillor Taylor said: "It is clear this is a report of an authority which is well managed and has good sound finances.

"It serves the people of Staffordshire."

Over the next three years the authority intends to make the biggest savings in its children and lifelong learning directorate, at around £12 million a year.

This has been determined by the service review board which was tasked with unlocking cash trapped in budgets so it can be redirected to 'priority areas.'

The council has identified eight of these. They are: service for vulnerable people; the importance of preventative services; local delivery of services; a customer centred organisation; moving the balance from supporting structures to front line; getting the basics right; service improvement and climate change.

Deputy leader Councillor Robert Simpson welcomed the financial report: "This is excellent news. It shows our financial planning is sound.

"It expels the myth that this is a cash strapped authority. We are managing our finances and delivering the services people demand."