A large council tax hike or swingeing service cuts look like the options facing Sutton residents following the Government's announcement of provisional funding for local authorities.

Sutton Council claims the Government's likely cash settlement for 2002/3 is £3.7 million short of what the borough needs to stand still, despite representing a 6.8 per cent boost on last year and including a 9.2 per cent rise for education.

With Sutton already a potential £1.75 million in the red, mainly due to the wheelie bin fiasco, the council may have to send tax bills soaring by more than the Government's recommended 4.5 per cent, or slash services.

This is a decision the Liberal Democrats will have to make next March, just under two months before they defend their four year record to voters in the May council elections.

If the council follows Government recommendations, Band D council tax currently £872.64 would rise by £33. But with the council claiming a black hole in its funding for 2002/3 and the GLA certain to increase its precept, the eventual rise is set to be much higher.

Council leader Councillor Mike Cooper said: "This year's rise does not compensate for the shortfall in funding last year and in previous years.

"Once again the Government has failed to provide adequate funding for local authorities to do their job properly.

"The Government must share the blame when council taxes rise and some services are either cut or reduced," he added.

But borough Labour boss Councillor Charlie Mansell urged the Lib Dems to stop continually blaming the Government for any difficulties they face and start taking responsibility for their own actions in administering a £160 million budget'.

He added: "I am very pleased the Government has shown recognition of the increasing pressures faced by local authorities, like Sutton, with a social services responsibility."

The Government's main block of funding for councils the Revenue Support Grant (RSG) is based on an estimate of how much it thinks each should spend the Standing Spending Assessment (SSA), which is £162.99million for Sutton in 2002/3.

The provisional settlement will be discussed at this Monday's strategy committee meeting, which kicks off at 7.30pm, at Sutton Civic Offices in St Nicholas' Way.

December 12, 2001 17:30