Cheshire looks like heading for an increase in Council Tax this spring of less than 5% - but will we end up suffering damaging service cuts as a result? As all three political parties at County Hall issue their budget statements, the Tory administration inevitably blame Labour Government policy for the dilemma, while Labour and Liberal Democrat leaders predictably claim the Tories are at fault for the way they are running Cheshire.

CHESHIRE'S Council Taxpayers are being victimised by the Government's 'inequitable and oppressive' redistribution of grants away from Shires to metropolitan areas, the county council's Tory administration claims.

Tory leader Paul Findlow reveals a 'well nigh impossible' financial situation in his introduction to the administration's budget proposals, still under discussion.

Cheshire's ruling Tories have levied the lowest Council Tax rise of any English shire over the last four years but now find themselves trapped between a massive funding shortfall and Whitehall's threat to cap authorities exceeding 5%.

Cllr Findlow said: 'The stark fact is that whilst local authority inflation stands at over 5%, the Government has allowed Cheshire a trifling 1.1%.

'This is a well nigh impossible situation and signifies an inequitable and oppressive redistribution of grant away from the shires in favour of the metropolitan areas.'

Cllr Findlow said the Government's resource equalisation policy has cost Cheshire a massive £17m to date and is estimated to increase to £22m from next year.

And, he added, while schools have fared better than other services, Cheshire is still penalised with the Government clawing back grant, simply because the authority has in the past topped up inadequate funding levels from the Council Tax.

'This trend is now accelerating,' maintained the Tory leader.

'The situation has left us with some very difficult decisions to make. We have been consulting with the public and discussions are ongoing.

'Whatever the outcome, our final Council Tax figure will not be exceeding the Government's capping limit and will ensure that the bills levied on Cheshire taxpayers remain among the lowest in the country over the last five years.'

THE old and vulnerable of Cheshire will suffer as a result of the Tories' 'live now, pay later' budget, claimed the county's Liberal Democrat leader.

County councillor Sue Proctor criticised service cuts proposed by the administration in libraries, road safety, protection from rogue traders, tackling crime, waste minimisation, Rights of Way and bus services.

She highlighted 'massive' proposed increases in care fees for elderly and vulnerable people and extra charges proposed for church school transport and 16+ school transport.

Cllr Proctor further attacked the Conservative group's 'unsustainable' record of borrowing, use of reserves 'to keep Council Tax down' and use of grants 'to plug gaps'.

'The Tories have created a 'live now, pay later' budget - and make no mistake, it is the people of Cheshire who will pay,' she said.

She accused the Conservatives of 'misleading' the Cheshire public over its claim to have invested £33m into this year's draft budget.

'Over £19m is ring-fenced funding from central Government for schools,' she said. 'Taking into account other factors such as service cuts and increased charges, the real investment is just £3.1m - one tenth of that figure.

'This lack of investment will not meet the growing needs of Cheshire's ageing population.

'Where savings targets set for departments are not achieved by cuts, massive increases in charges are planned.

'It means the old and vulnerable will suffer the most.'

CHESHIRE'S Labour leader Derek Bateman attacked the Conservative administration's budget proposals, accusing it of 'mismanagement and breathtaking ineptitude'.

And he alleged an abuse of Government funding had removed the opportunity to employ an additional 70 teachers across the county.

Labour's earlier budget predictions were apparently coming true, he said.

'Now we have seen the draft proposals and heard the Conservatives' lamentable excuses during the half-hearted budget consultation process, it seems sadly we were correct,' said Cllr Bateman.

'Their failure to properly and prudently invest in modern, cost-effective and customer-focused public services means they are left with a major funding gap.'

Labour claims the Tories have chosen to 'simply, artificially and temporarily' lower Council Tax and spending.

'It's clear the council is failing to maintain its 'excellent' status,' said Cllr Bateman.

'We're now a three-star council while most other large councils enjoy a four-star status.'

The Labour Group further accuses the Tories of 'misusing' a 6.6% increase in the Dedicated Schools Grant provided by the Government for pupil funding. It's claimed the Tory administration has instead used up to £2.8m to relieve pressure on other, non-school areas of the education budget.

Cllr Bateman said: 'Had this been spent as the Government intended as many as 70 extra teachers could have been employed.'

Labour has also focused on a shortfall in budget provision for adults with special needs, a total of £2.3m. A shortfall of almost £5m in what is required just to balance this year's budget has been allocated, it says.

'There was also evidence of poor management on the capital front,' said Cllr Bateman. 'The capital budget is clearly insufficient to meet all capital demands now facing the council.

'The result is a lost opportunity to modernise services and to provide more efficient and cost-effective services.'