Old people's homes across the county have been saved from privatisation - by one vote.

At a tense extraordinary meeting at County Hall, councillors voted 39 to 38 to overturn the sale of the 33 homes.

That blocks a decision made by social services committee on the casting vote of chairman Joe Pike.

Campaigners cheered from the public gallery as the vote was read out at the meeting called by Labour and Liberal Democrat councillors.

Councillors also voted to reject a decision to introduce a controversial integrated charging system for the elderly and disabled who need home care.

A total of 33 old people's homes throughout Essex were to be sold off by the council. Homes would stay open but would be run by private companies from April 1 next year.

In Rochford district the Liberal Democrats had been particularly vociferous in opposition to any sell off. Today councillor Vic Leach said the saving of the homes was great news.

He said: "It is thanks to Lib Dem pressure that our Tory county council has seen sense.

"It is good news that our elderly residents will not be subject to the whims of commercialisation.

"I am pleased for the staff and the stability it will give me, and that caring will stay genuinely within the community it belongs."

Councillors also voted to reject a decision to introduce an controversial integrated charging system - means testing - for the elderly and disabled who need home care.

Labour group leader Mervyn Juliff said: "I hope that today's meeting will send out a signal to the people of Essex that we do care for them, and when they are consulted we do take their views into consideration."

Tory council leader Lord Hanningfield said after the meeting: "I am disappointed at the result of today's meeting.

"The Labour and Liberal Democrat groups have been extremely irresponsible over this whole issue. We have been debating these policies for nearly a year and yet at no point have they ever suggested an alternative way of balancing the budget.

"I know that some people were concerned about the charges we proposed, but we strongly believe they are the best way forward given the budget problems we face."

The Lib Dem/Labour motion passed today instructed the social services department to find alternative ways of balancing the budget and find a long term strategy to address the problems of providing care in Essex.

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