CONSERVATIVES at Castle Point Council have spoken out to reassure residents its finances are sound.

A statement on behalf of the Tory leadership of the council stressed that the authority had a “very sound”

record of financial management without cutting frontline services, despite facing a £3.5milllion cut in Government funding – equivalent to 53 per cent.

The leadership statement followed an Echo article yesterday on a council report claiming council tax may have to rise by up to two per cent unless it found savings to maintain its minimum £2.4million reserves in the coming years.

Castle Point Council is looking at options such as sharing services and senior managers with neighbouring councils as a way of cutting costs.

The council’s financial forecast had warned councillors earlier this month that there would be a “significant funding gap” from 2015/16 and there were “real and significant financial risks” that could deplete the reserves – particularly planning appeals and associated legal costs.

The leadership statement said: “The Financial Forecast is a working document that ensures that the council is able to plan ahead and take measured steps to deliver a balanced budget each year.

“Since the Conservatives took over from the Labour administration back in 2003 the council has set a balanced budget year on year and at present the council’s reserves are at or near to the highest they have ever been.

“As a logical and efficient council we have indicated, within our financial plans, funds which may need to be made available for costs associated with defending against planning appeals.

“The cabinet member for finance, councillor Jeffrey Stanley, clearly makes this point regularly when giving his briefings and has indeed stated that he is hopeful that the Local Plan will be put in place soone so that these funds may instead be used to improve and support the facilities our residents need.

“The cabinet member for reform, councillor Bill Sharp, is making much headway in looking at the most cost effective way of delivering all services including sharing services with other boroughs which would deliver a cost saving to both authorities.

“By way of example, the leisure service has seen a massive turnaround with costs being reduced by some £700,000.

“He is also looking at the senior management tree of our and other authorities to see where sharing these senior roles could also assist in the cost cutting measures we are looking at.”