by SARAH HUTLEY Councillors today vowed to press ahead with a 10.8 per cent increase in council tax, despite warnings from finance officials that the Government could take action against the rise.

Michael Clayton, director of finance at Castle Point urged members to give careful consideration to the matter before reaching the decision at a meeting of the full council last night.

As part of the budget proposals, the borough plans to spend 35 per cent more than the Government recommendation for next year but councillors plan to soften the blow by using around £490,000 from reserves.

If the Government decides to take action against the council, it could set an alternative budget during the financial year and force officials to re-bill for council tax. This could cost thousands of pounds.

In a report to members, Mr Clayton said: "The budget and council tax increases recommended by the finance and policy committee bring us into territory where some form of action may be taken by Government under their reserve powers.

"Action could depend on how our increases compare with the general trend."

When the increase comes into force, residents living in the headline band D will have to pay an extra £14.40 a year or 28 pence per week for services provided by Castle Point Council.

Chairman of finance Dennis Neyland said: "We have looked over the director's reports and have now arrived at the position where we think this is the way forward. We have not got it wrong."

Tory spokesman for finance Jeffrey Stanley (Canvey South) said: "It is an absolute disgrace that an increase of 10.8 per cent has even been considered.

"That is over four times the level of inflation. Labour can not say they have not had sufficient notice of budget problems. Unfortunately for the residents of Castle Point no action has been taken. This problem has been ignored right up until the last moment."

Tory Leader Doug Roberts (Benfleet St James's) said: "Labour has been in power now for almost five years - ample time to come to terms with the reality that we have been asking them to make reductions to their budget for over three years and they have steadfastly ignored these requests."

Jenifer Howlett, Labour councillor for St Peter's ward, hit out at the Tories accusations.

She said: "Since Labour took control in 1995 our reserves have gone up by £300,000 and our borrowing has gone down by £3 million. Our chairman of finance and officers should be congratulated for the excellent job they have done for our borough."

Council leader Dave Wells said: "The Tories are still showing their financial incompetence. They want to increase spending and reduce council tax.

"We inherited their rate-capping and have only just got the chance to be able to improve the borough's finance. We are going to bite the bullet and balance the budget."

In an earlier story about council tax bills, it was stated that Castle Point Council was trying to clear debts of £2million. We would like to make it clear that the borough council does not have debts of this amount.

The new charges

Band A £575.94

Band B £671.93

Band C £767.92

Band D £863.91

Band E £1,055.89

Band F £1,247.87

Band G £1,439.85

Band H £1,727.82

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.