COUNCIL tax bills in Bury are going up by 5.9 per cent from April while another £2.2 million is cut from services.

This means people living in the lowest rated Band A houses will see their bills rise by £28 a year, while those in the most expensive Band H homes will pay three times that amount more.

Town hall leaders say the rise is less than expected, and say extra government cash for schools and social services has greatly reduced the amount of cuts needed to balance the books.

But others say Labour has not done enough, and services face another grim year.

Bury's tax increase is slightly below the average for Greater Manchester, where rises imposed so far range from Bolton's eight per cent to Salford's five per cent. The Government predicts a national average hike of about 7.5 per cent.

Mr John Cook, borough treasurer, had forecast a tax rise this year of 7.4 per cent. But Bury received an extra £200,000 in a government grant, and collected £250,000 more in local taxes than first budgeted.

But Liberal Democrat leader, Councillor Vic D'Albert, told Tuesday's finance committee that the new Government was elected to restore services.

"I am relieved that the New Deal for Education is going to save the service this year, and I'm relieved the social services budget has been similarly improved. But there's been a tremendous impact on other areas, particularly highways," he said. "I don't expect miracles, but I cannot approve another £2.2 million of cuts in local services."

Councillor Steve Perkins, committee chairman, said Bury's situation had greatly improved since the election.

"We started off looking at £8 million of cuts and have ended up with £2.2 million. The difference is the new Government putting more money into education and social services."

But Coun D'Albert said: "My Party cannot accept Labour sticking to the previous Government's spending limits. Perhaps we are more impatient, but we would have liked to have some more action and a better local government settlement.

"We need it now, we cannot wait while services keep on crumbling."

Tory spokesman Councillor David Higgin was worried about the number of one-off cuts which could not be repeated next year. But Coun Perkins said that the alternatives would have cost more.

Nearly 90 per cent of a council tax bill comprises what Bury Council needs for its services. The remainder goes to pay for the county's police force and fire service.

Councillors Higgin and D'Albert opposed the budget, which has to be formally set by the full council next week.

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