NIGEL Evans MP for Ribble Valley has warned that the government's penny on national insurance contributions will lead to service cuts or council tax rises across East Lancashire.

The Tory MP wrote to Ribble Valley Borough Council to ask how much the increase in employers NICs would cost the local authority in employers contributions.

The council accountancy manager Bob Valance replied: "I estimate, in a full year, the extra expenditure for this authority will be in the region of £46,000. "

Mr Evans said: "This is bad news for people in the Ribble Valley and there will be similar damaging effect across other local authorities in East Lancashire as a result of the chancellor's increase in NICs taking effect in 2003/4."