Council leaders in Essex have reacted with caution after finding out how much the county will receive in the latest round of Government grants.

Essex will get a 5.5 per cent increase but there are fears it won't be enough.

That could mean council tax payers having to bridge any shortfall.

Essex County Council leader Lord Hanningfield said: "Until we get a close look at the small print that always accompanies these announcements, it is impossible to make an accurate judgment on the impact that this will have on the finances of Essex."

The council has been forced to make cuts after suffering the lowest funding increase in the country.

But Labour leader at County Hall Paul Sztumpf last night dismissed fears of huge council tax hikes as "Tory scaremongering" and "petty political whinging".

He claimed the settlement was more than enough and denied the county was heading for "financial meltdown".

Simon Burns MP for West Chelmsford described the 2.2 per cent increase for Chelmsford Council as "not at all good".

Published Thursday November 20, 2003

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