COUNCIL tax will rise for the first time in five years after the Labour and Lib-Dem coalition's budget proposals were passed today (Thursday, February 19).

The 1.99 per cent increase comes as the County Council desperately try to make £84million worth of savings over the next three years.

This budget alone is set to save £32.6million.

Council Leader Stewart Young, Labour, and Deputy Leader Pat Bell, Lib Dem, claim the budget protects frontline services in the face of extreme funding cuts from central government.

In 2012, £148million was given to Cumbria County Council by central government as part of the Revenue Support Grant, but that is going to be cut entirely by 2020 and it currently stands at just £79million.

The cut in funding lead Cllr Bell to say: "We are increasingly reliant on council tax to raise funding. We were not elected to run the country, rather to serve the county. So, no matter who's running the casino we have to deal with the hand we are dealt.

"This budget is the most drastic step yet in reducing the size of the organisation, and cutting the back office. Around 80% of the new savings we've identified this year are internal, with only 20% outfacing.

"We are reshaping our budgets so they are more locally focused.

"As regards Council Tax we simply can’t go on freezing this if we want to continue delivering services to the people of Cumbria, who rely on our services. Accepting a further council tax freeze grant would mean having to make far more savage cuts in services than outlined in this plan."

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It is claimed that the tax hike will generate £3.7million to help protect frontline services, significantly more than the £2.1million it would receive if it accepted a government grant to freeze council tax.

While the coalition claim to be protecting frontline protests, Cllr James Airey, leader of the Conservative opposition, called the council tax hike 'rubbish'.

He said: "Butcher Bell the 'Skirsgill Slasher' cries her crocodile tears when she informs us that we can’t afford to take the Council Tax Freeze grant this year. Rubbish! 

"How can we ask the public to dip their hands into their pockets and pay more council tax when it isn’t clear what this will buy?

"We have an implicit contract with the public. We ask them for money to deliver services on their behalf.  Let’s show them where any increase would be spent. We cannot agree to any increase in council tax without a clear commitment that it would be spent on restoring services such as busses in rural areas or getting our young people to college."

Cllr Airey also proposed increased funding for Cumbria Tourism and the protection of rural bus services, claiming the council's proposals were too 'urban focussed'.

Controversy then reigned in County Hall as both Cllr Bell and Cllr Young complained to the speaker about Cllr Airey's decision to call Cllr Bell 'a poodle' on two occasions during his proposed ammendments speech.

Cllr Airey later refused to apologise.

Meanwhile, outside, 50 protestors voiced their anger at the 1,800 redundancies made to council staff over the coming two years.

The job losses mean the council will have half as many staff as it did in 2010.

Dave Armstrong, regional organiser for the UNITE union, which represents county council staff, said: "1,800 people are going to lose their jobs through no fault of their own. It's not because their services aren't needed. Services will be cut right across the board.

"It will be Cumbria County Council that is remembered for reducing their services, not the David Cameron led government."