COLCHESTER Council’s finance chief has been accused of burying bad news and being vague with details of savings.

But Paul Smith, whose council tax increase of 2.47 per cent was agreed last night, says he is being honest with residents. Christopher Arnold, deputy chairman of the finance and audit scrutiny panel, repeatedly questioned the validity of the savings that had enabled such a comparatively low tax rise.

The Tory also criticised the fact the good news was in large print at the front of the report, while the bad news was buried in the appendices.

The £117,000 savings from the street services budget drew particular criticism.

Mr Arnold questioned how, at a time when the number of houses in Colchester was growing, money for the department responsible for waste collection would be less.

During a heated meeting, Mr Smith was forced to defend why funding had been withdrawn for projects such as refurbishment of public toilets and maintenance to council buildings.

Mr Smith said: “We are being realistic. We are removing these items that we do not have the budget for.

“We are being honest with the people of Colchester.”

Mr Smith said a review of waste services would deliver part of the savings needed.

Dennis Willetts, Tory chairman of the committee, said in order to maintain the levels of spending in 2011/12, council tax would have to increase 18 per cent.

Mr Smith rejected the analysis, saying spending this year was to cover one-off projects.

Agreement on the budget at the cabinet meeting means Band D council taxpayers will pay £4.22 more a year, making a total of about £175.

The final total will also include payments to the county council, police and fire service and parish councils.