TOWN hall bosses could still avoid a possible seven per cent council tax increase with some last minute book balancing, says a council insider.

Finance chiefs have been told they would have to increase council tax by seven per cent in April to sustain current spending levels. This would mean a £59 hike for the average householder, with residents paying between £39 and £118 more under the new rules.

But savings on a range of services over the last 12 months have resulted in healthy cash reserves, which could be pumped back into this year's budget.

A town hall pundit says this means members have the option to reduce charges for the first time in several years. But it would cost £400,000 to reduce projected council tax levels by just one percent.

She said: "There are quite a lot of reserves, nearly £11 million, which come from underspends in service areas. Some of this money has already been earmarked for other things, but it could still be used to cut council tax. We've always had high council tax in St Helens and I think this year, members may decide to give a bit back."

Members of the Council's Policy and Resources Committee were due to meet on Wednesday night to discuss the budget. But the decision has been deferred until a meeting of the full council next Wednesday, when members of all three parties will present their budgets.

Council Leader Mike Doyle said new figures were still coming in as the GUARDIAN went to press, and insisted the decision could go either way.

Assistant chief executive, finance, Peter Yates, said any council tax reductions from the use of reserves would be a short term solution.

"Due to good managment over the last four years, balances are healthier than they have been for a long time," he said. "But the problem with using reserves is that once you spend them they don't come back and this doesn't reduce overall spending levels."

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.