A SENSIBLE budget – a budget that prioritises services while, at the same time, prioritises residents’ wallets – that’s how the ruling Liberal Democrats have summed up the new budget.

The 3.76 per cent increase in council tax – approved by Rochdale Council this week – is the lowest rise in the borough for 12 years.

Councillor Greg Couzens, the cabinet member for finance, said the budget offered real value for money for residents.

But the opposing Labour group accused the Lib Dems of wasting a real opportunity of easing the effects of the credit crisis, alleging that they had ‘squirrelled away’ money so they could use it to their political advantage next year, an election year.

The budget will see spending of nearly £52M on housing-related projects, including £28M on regeneration initiatives, £3M on affordable housing, £14M on improving the council’s housing stock and £5M to support the private house sector.

The budget also includes a £1M contribution to the development of schools.

Other schools projects provided for in the budget will enable investment in IT, improving access for disabled pupils and maintaining and modernising schools.

A corporate efficiency plan is hoped to deliver £2.3M of savings.

The budget also contained just under £900,000 for spending on priority areas.

They include: £250,000 for older people, £60,000 for improvements to gateways to the borough and £50,000 for drain repairs.

Presenting his second budget to the council, Councillor Couzens said it had been a hard year for Rochdale.

Many residents and businesses had experienced financial hardship, some of which were the worst in living memory.

People lost jobs, making it hard for them to pay their mortgage or rent, or difficult to keep their business open.

"A large proportion of these people have turned to the council for help and we have made sure we are able to offer as much assistance as possible."

Councillor Couzens described the budget as a ‘considerable achievement made possible through focus, prioritisation and sound services planning processes, all underpinned by excellent financial management’.

However, Labour’s spokesman for regeneration and employment, Councillor Terry Linden, accused the Lib Dems of ‘taking money out of the pocket of hard-working families and out of the local economy’.

"They forced through, using their block vote, an increase of 3.7 per cent when an alternative increase proposed by Labour of just 1.65 per cent would have left local families with more money in their pockets to spend locally, keeping the local economy going.

"The Liberal Democrats at Rochdale have shown what they are really all about. They have rejected any attempt by other councillors to work together for the good of the borough."

The Conservative group was equally scathing. Their finance spokesman, Councillor Robert Clegg, said despite what the Lib Dems said, their budget was a long way from excellent.

"Their aspirations may be excellent, but they have not delivered – and that’s what counts."

Conservative leader Ashley Dearnley said his party maintained the priorities should have been focussed on improving council services at the lowest possible cost to council tax payers.

The council will begin sending out council tax bills next week.

COUNCIL TAX - what you will pay:

2009/10 bill Increase on 08/09
Band A 
£950.94  
£36.92
Band B 
£1,066     
£43.08
Band C 
£1,218     
£49.23
Band D 
£1,371      
£55.38
Band E 
£1,675      
£67.88
Band F 
£1,980      
£79.99
Band G 
£2,285     
£92.30
Band H 
£2,742     
£110.76