Tories exaggerate benefits of County budget, say Lib Dems

"Essex residents face a proposed council tax rise of 4.6% - around twice the rate of both general inflation and the increase pensioners will receive in April this year" says Cllr Tom Smith-Hughes, leader of the Liberal Democrats on Essex County Council.

"The Conservatives say Essex has received the lowest central government grant in the country. They do not say that Essex has received over 6% extra for schools and for other services, the same increase as lots of other shire counties.

Indeed Essex received £16m of grant protection - paid for by other councils such as neighbouring Suffolk and Norfolk county councils. The government has indicated that councils will be rate capped if they increase council tax by more than 5%, so it is likely that most councils will be setting their council tax rise at figures similar to Essex.

The quoted 10.7% increase - £25m - in adult social care for 2006-07 is particularly misleading: the comparison is with the original budget for 2005-06. This year's budget is forecast to overspend by £15m and when allowance is made for inflation and funding required to replace expenditure paid for this year by other grants, next year's budget is in reality lower in spending power than this year's budget. Moreover the council is only seeking to meet needs assessed as 'substantial and critical'.

The Lib Dem group accept that the financial background is difficult, and have supported moves by the council to reduce back office costs and reinvest the efficiency savings into front line services. However, we believe the Tories are 'gilding the lily' in exaggerating the benefits of their budget to the people of Essex. We will continue to examine the budget in detail and make detailed amendments at the full council meeting on 14 February."

Meanwhile in Epping Forest, where the Liberal Democrats sit on the council's executive, the district council's share of council tax is unlikely to rise by more than 2.5 per cent in any of the next four financial years.