BUDGET proposals announced by the city’s Labour administration could be ripped up after the Government relaxed its rules on council tax increases.

Late yesterday the Secretary of State for local government made the surprise announcement that town halls will be allowed to increase tax by six per cent (including a three per cent Adult Social Care precept) not five as was previously the case.

But the draft Budget for next financial year, unveiled by leader Councillor Warren Morgan last month, is based on a five per cent rise.

t includes £13 million in cuts to balance the books, £12 million of which have been identified. Cllr Morgan said front line services would not suffer and savings were from efficiencies.

A six per cent rise would mean £1,686 in council tax for a Band D home.