Basildon: Basildon Council cash crisis

Basildon Council is facing a serious cash crisis next year which could lead to service cuts - reports the Basildon Recorder. Council tax may also rise by five per cent

The financial difficulties have come about because the council must find up to £500,000 to subsidise pensioners' free bus travel next year.

Basildon Council is the only authority in Essex yet to pay £100,000 from last year.

Terri Sargent, cabinet councillor responsible for community services, said consultants were trying to work out ways to meet rising costs as more elderly people take up passes.

Mrs Sargent said: "Our bill for last year is late. We expect it to be even higher this year.

"We have no idea what it will be when the scheme goes national, but uptake is always increasing.

"A report will go to cabinet next month." Council leader Malcolm Buckley said: "A review of services has identified a number of savings, but this does not take into account bus pass cost increases.

"The problem is we have to set our budget before knowing the actual cost of passes when they go nationwide."

Meanwhile, Phil Turner, the council's cabinet member for resources, warned there would be little scope for investment. He said: "Basildon's grant from the Government is already the lowest possible and well below the national average.

"The amount we are likely to get will not cover all the costs of inflation, new legislation and the extra responsibilities."

Mr Turner added: "The burden of making up the balance will fall upon the council tax payer."