VITAL local authority cash reserves would be raided to fund Tory and Liberal Democrat budget proposals to rein in cutbacks, council leader Cllr Steve Foulkes has warned.

On the eve of last night's crucial budget council meeting Cllr Foulkes went onto the offensive to defend Labour's budget, which foreshadows a 3.98% council tax rise - including police and fire service precepts.

He claimed that both rival political groups were bent on pursuing "live now - pay later" policies, which would generate a big deficit next year.

He said: "All they are doing is storing up trouble for next year. This money (from the VAT reserve and housing revenue account) won't be available next year. The directors of finance and housing have warned that this money is earmarked for other purposes, but that advice has been ignored. This money is only available for one year and must be replaced."

Cllr Foulkes insisted that, like household finances, if a budget was exceeded then cutbacks had to be made.

He said: "To achieve a low council tax increase there needs to be a reduction in services. We are trying to live within our means."

Wirral Tory group put forward a series of amendments to last night's meeting which, if accepted, would have resulted in a council tax rise of 2.7% - 2.9% when fire and police levies were included.

The proposals would, among other things, have scrapped planned increases in car parking; safeguarded the long term future of the Warrens Nursery; kept the ERIC unwanted furniture removal service free and reversed Labour cuts to Wirral Community Patrol and library opening hours.

Tory group leader Cllr Jeff Green said his group had been able to protect services and keep council tax increases down by carrying out a thorough scrutiny of the council's budget to reduce waste and increase efficiency.

He commented: "I am horrified and appalled that, because Wirral's four Labour MPs have failed to convince the Government to protect Wirral residents, we have lost £2.4m of the area cost adjustment, that has been transferred from Wirral to the West Midlands and South East.

"We believe that our budget, which would increase the council tax by 2.7%, has delivered the right balance between protecting services and keeping more money in Wirral residents' pockets."

The Liberal Democrats budget proposals included a further £700,000 allocation for schools and an extra spend of £350,000 to extend green waste collections across Wirral. Further cash would be made available to develop the community safety agenda, expand alley-gating and enhance the strength of the community patrol.

Group leader Cllr Stuart Kelly said: "Had we received the same level of settlement as the national average we would be looking at inflationary tax rises, no unpopular cuts in services and the opportunity to invest in council priorities."