Lib Dems work to combat pensions crisis

12.00.00am BST (GMT +0100) Tue 1st Jul 2003

Uttlesford's new Liberal Democrat administration is campaigning for government intervention to save its residents from excessive Council Tax increases next year to pay for a pensions "black hole".

Poor returns from the Stock Exchange mean that Councils all over Essex face a shortfall in their staff pension fund. Unless the Government steps in to support the scheme, Council Tax payers will have to make up the difference.

This means that without compensating savings on other Council expenditure, Council Tax bills would have to rise by over 15% next year and continue to increase without any corresponding improvement in services.

Essex County Council operates the Pension Fund on behalf of all Essex local authorities. Uttlesford needs to raise an extra £1 million to cover pension liabilities to its staff.

Council Leader, Alan Dean, Liberal Democrat member for Stansted South, said: "The shortfall on the pension fund will mean that Uttlesford residents could end up paying another £20 next year in Council Tax. We have agreed to work with other councils to lobby the Government for changes in the way the scheme operates.

"Local taxpayers should not be required to foot this bill, but unless the rules are changed it's something over which we have no control."

As well as lobbying the Government, Uttlesford's Liberal Democrat Group is to review all council spending to secure efficiency savings that will lessen the blow to residents.

Cllr Mark Gayler, Liberal Democrat Member for Great Dunmow North and Chairman of the Resources Committee said: "Over the Summer we are going to examine in detail everything that the council spends. We will be prioritising the services that the council provides to ensure that we improve the areas that are most important to residents, but look to find savings from other areas.

"This will mean improving efficiency, and challenging longstanding areas of high expenditure to see if they are really necessary and are what the community wants us to spends its money on."