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Last Updated: Thursday, 26 February, 2004, 07:36 GMT
City passes controversial budget
Leicester City Council has approved an 8.7% council tax rise that will mean cutbacks to dozens of voluntary groups.

Hundreds of protestors have opposed the budget, which shaved more than �1m from the city's voluntary sector.

The city's ruling Liberal Democrat and Conservative alliance made only one �9,000 adjustment to the �350m budget at a meeting on Wednesday evening.

Leicestershire County Council approved a 6.4% tax rise at a separate meeting despite opposition from pensioners.

Transition fund

Members of many organisations have spent the past few weeks vigorously campaigning against the city council cuts, but only a handful of voluntary groups were given a reprieve.

It has been a painful process, but a necessary process
Roger Blackmore
Council leader

During a four and a half hour meeting on Wednesday, the alliance passed the budget despite opposition from the Labour group on council.

Deputy Prime Minister John Prescott has warned local councils to submit percentage rises in "low single figures" or risk ministers using their budget "capping" powers.

Some of the groups that face budget cuts in Leicester include Rape Crisis, Leicester Charity Link, the Belgrave Playgroup and Soft Touch.

The ruling coalition said cuts were necessary because of a �10m shortfall handed to it by the outgoing Labour administration.

"It has been a painful process, but a necessary process," said city council leader Roger Blackmore.

He said there will still be services for those who need them.

A transitional fund has been established so voluntary groups can get some discretionary money, he said.




SEE ALSO:
Reprieve for charities
16 Feb 04  |  Leicestershire
March to protest budget cuts
08 Feb 04  |  Leicestershire
Budget cuts hit good causes
07 Jan 04  |  Leicestershire


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