'GROSSLY inadequate' funding from central government was last week blamed for a tax hike imposed by West Devon Borough Council.

The borough is facing a cut in its funding from the Government and tough decisions had to be made before members finally agreed the council tax rate at their meeting in Okehampton last week.

The council made savings of £1.1-million to keep bills down, following a rigorous scrutiny of its budgets.

Cllr Dick Eberlie, chairman of the borough's policy and resources committee, said that had West Devon received its full grant of £332,000, it could have held the average council tax increase at £4.09 a year. Instead it received only an extra £165,000.

Council tax for an average property will now rise by more than £13 a year. The new charge means householders in an average Band D property will pay £150.70 – a rise of £13.01 or 25p a week — for West Devon council services for the coming financial year.

Cllr Eberlie, said: 'This is a much bigger increase than any of us would like — £165,000 is grossly inadequate to enable the council to meet the many challenges ahead.'

These included serving extra residents, meeting high government-set recycling targets, paying for higher concessionary fare costs, supporting community planning, financing E-Government and tackling a maintenance backlog, particularly the authorities public conveniences.

Cllr Eberlie said: 'We are cutting costs as far as we dare but we are not cutting corners in providing quality services.'

He said the authority was determined to continue to promote its key priorities — housing, economic prosperity, community life and recycling.

The budget for 2004/2005 is around £6.3 million – one of the smallest in the country. Yet the central government grant to the authority for the financial year was far lower than expected.

The council says central government did not take recent census figures into account, which show the population of the borough has risen by 3.75%, and that extra money is needed to provide quality borough services.

The council, along with MPs Gary Streeter and John Burnett, had lobbied ministers in a bid to reclaim the money.

Cllr Margaret Garton, Independent group leader, said: 'We have done our best for the tax payers of West Devon with the hand we have been dealt.

'This is, in effect, a standstill budget, as 6.5% of the increase is due to money being taken from West Devon council tax payers, to fund other councils, leaving a net below inflation rise.

'Hard work, and difficult cost-cutting decisions by councillors and staff will mean that our council tax increase will be used more effectively to fund good quality front line services, increased employment opportunities, helping the homeless, increasing recycling and important community development projects in our towns and villages.'

Cllr Jane Waterhouse, for the Liberal Democrat group, said: 'It has been an incredibly difficult time. We had real priorities to meet, and a determination to keep the tax increase to the absolute minimum.

'In real terms we kept the increase below 3% — but were defeated by the government.

'The good news is that we have managed to maintain funding for the core services and our high priority areas such as affordable housing, disabled facilities grants and recycling. The whole council worked together to achieve the best result possible. However, we all know that the current system is basically flawed and must be reviewed at the earliest possible moment.'

l Devon County Council has made budget cuts of almost £11-million to keep the council tax rise to 5.25 per cent this year.

The increase, one of the lowest in the South West, will put 77p on the average council tax bill. A band D council tax payer will pay £900.36 for services provided by the county.

The budget cuts will hit education support services, social care and roads.

But Devon's 371 schools will see a 5.4 per cent increase in their budgets and there will also be £3.9 million of funding available for affordable housing projects for local people.

The money will come from Devon's share of the extra cash raised from cutting council tax discounts on second homes. The projects will be developed jointly with district councils and other partners.