LEADERS of West Devon Borough Council say they will not give up the fight for a fair funding settlement, following a central government grant announcement which has created a huge hole in its budget.

West Devon will receive £165,000 from the Government for the next financial year ? far less than the borough had expected and less than this year?s settlement of £251,000.

Cllr Dick Eberlie, leader of the Conservative group on the borough, said the battle would continue to try and obtain increased funding from central government.

He said: ?We are going to press on and tackle the Government on this. We are very, very angry and we?re not going to leave it there.

?Our budget is dire, there?s no question of it. It will put 6.75% on council tax for everybody and money West Devon should have had is going elsewhere. It?s unbelieveable, it really is ? it?s totally inequitable.?

Cllr Eberlie said the borough was ?very grateful indeed? for the efforts made by the borough?s two MPs, John Burnett and Gary Streeter, who raised questions about West Devon?s grant settlement in the House of Commons last week.

Cllr Margaret Garton, Independent group leader, said she was ?very disappointed? at the funding settlement, particularly after all the efforts the council had made to trim costs.

?Certainly I would hope that working with the other two group leaders we will press for an additional meeting with ministers ? we hope to pursue this matter,? she said.

Cllr Alison Clish-Green, Liberal Democrat group leader, said: ?Obviously we are disappointed with the settlement received from the Government, and I think it shows they are out of touch with the needs of people in rural areas.?

Lesley Halton, borough treasurer, said: ?We should have had an increase of £332,000, primarily because our population has risen by 3.75%.

?However, the government has decided to subsidise councils whose grants have been below 3% ? this is at the expense of small councils such as ours.?

West Devon is due to set its council tax rate for the coming year at at meeting being held in Okehampton next Tuesday.