Council tax rise will help to save £11m

Oldham Council:

OLDHAMERS face a 1.9 per cent rise in council tax as the ruling Liberal Democrats strive to make big savings and invest for the future.

Budget plans put forward by the Lib-Dems will create £11 million in savings in 2010/11 by stripping out layers of management, merging services and working more closely with neighbouring councils.

The yearly rates include allowances for the police, fire service, waste and transport and come in under the group’s target of capping tax rises at 2.5 per cent.

Last year, the Lib-Dems made savings totalling £21million and the council is working towards plugging a £45 million budget gap over the next three years.

An alternative budget put forward by the Labour group was slated by the Lib-Dems who said it lacked vision and ambition.

Labour proposed to cut £15million and invest £5million with plans including re-opening the library in Union Street and making the whole of Oldham a wireless internet zone.

Budgets put forward by both groups were in agreement on most points but the Lib-Dems claimed victory at last night’s council meeting after Mayor Jim McArdle used his casting vote.

Council leader Howard Sykes said: “There will obviously be some differences between the two budgets, otherwise there would be no point having separate political parties.

“We all have to do what we think is right for the people of Oldham.

“We listened to what Labour had to say and incorporated some of their ideas.

“A budget re-distributes funds so it would be incorrect to say that everyone benefits.

“Some people will lose but we have to be honest about the challenges in front of us and face up to them.”

Labour leader Jim McMahon said: “Our budget plan is above board and honest.

“We know that some people will be affected by some of the cuts but it is something we have to do.

“We have no choice. I am proud that the Labour group delivered a budget plan that provided a real alternative and opened up debate so that we can work towards getting the very best for the people of Oldham.”

The Conservatives did not submit their own budget plan but criticised the other two parties for failing to deliver a flat budget with no increase.