COUNCIL chiefs claim a proposed £5m package of cuts is needed to protect the borough's council tax payers.

Two council committees have advised Mayor Steve Bullock council tax will have to rise without the savings package.

And the Government has warned the council it could be capped if it increases the tax by more than five per cent.

The budget savings proposals, which will see minor cuts in areas such as youth services, libraries and intermediate care, were first discussed by the cabinet last month.

Speaking at last week's full council meeting, Mr Bullock said: "This is about trying to make sure we increase council tax by as low an amount as possible.

"The people of this borough do not want us to sit here and profligately spend their money."

The council's social inclusion and public accounts select committees have warned 0.6 per cent would be added to any council tax increase if the savings package is not implemented.

Council papers also reveal Mr Bullock has "received guidance from the Local Government Minister if the council exceeded 4.9 per cent it would risk being capped".

Mr Bullock added: "Ministers will not countenance local authorities having rises in tax above five per cent.

"It is open to this council to set a rise above five per cent but I think we would be stupid to do this."

Cabinet member for resources Councillor David Whiting stressed the proposed cuts would not affect frontline services.

He added: "These cuts are about doing things better and more efficiently."

Liberal Democrat councillor Matthew Huntbach says people need to be given more information on the financial risks being faced by Lewisham.

Criticising the capping threat, he added: "It is not up to the Government to tell the people of Lewisham how much of their money should be saved."

Mr Bullock has also promised a review into the council's use of consultants. Last month News Shopper revealed the council spent more than £8m in the past financial year on outside expertise.

MESSAGE LEAKED

DEPUTY Mayor Gavin Moore was left red-faced after a confidential email was leaked to a packed council chamber.

The email ordered Labour councillors to avoid speaking to a group who opposed a motion supporting its Building Schools for the Future programme.

The email read: "It goes without saying but we need to ask you all not to have dialogue with the New School Campaign who are opposing the group motion to council tomorrow night."

Cllr Moore circulated the message to all Labour members but also mistakenly sent it to Green councillor Darren Johnson.

Brockley ward Cllr Johnson exposed Cllr Moore's gaffe by reading the email out during the debate prompting laughter from the opposition benches. Cllr Moore declined to comment on the incident.