THE leader of Tendring District Council has reassured taxpayers the future is bright after a report revealed the financial pressures it is facing.

THE leader of Tendring District Council has reassured taxpayers the future is bright after a report revealed the financial pressures it is facing.

Terry Allen was responding to forecasts which show the council is facing a shortfall of up to £1.7million for the coming year.

The council's own detailed report into the state of its finances state says it is facing a “significant budgetary problem” in 2008-9 if costs pressures continue.

But Mr Allen said although there were pressures, no plans for improvements had been cancelled.

He said: “We have vast lists of things we would like to do, but have not got the money to do it all and we have the lowest tax base in Essex.

“Each year we are sorting out the money so the budgets are balanced. No schemes have been cancelled - we just have lists of things we would like to do, though of course it's not possible to do them all.”

He said he was sure residents would back reasonable council tax increases and good services as well as a significant investment for the district.

“The council is making sure it can plan in advance to provide good services with significant investment and reasonable council tax rises.

“Already we are planning to invest more than £3m in new leisure facilities, public toilets and town centre improvements.

“This certainly is not a description of a local authority facing cash misery.”

The financial report says: “The council has a low tax base and provides a diverse and extensive range of services. This means that we will inevitably face continuing financial problems.

“Currently the budget position for 2007-8 appears manageable by tight financial management and the limitation of growth expenditure items.

“A number of significant risk factors could however jeopardise the position.”

It also states there are “no easy answers” as growth expenditure items by heads of service “continuously exceed our ability to fund them.”

The report was discussed by the council's corporate management committee yesterday.

james.hore@eadt.co.uk