WORK to prepare Preston council's annual budget is stepping up.

Councillors are considering options for budget increases and reduction, before final agreement is reached at the full council meeting on Thursday February 22.

Harold Parker, Preston Borough Council's resources and property cabinet member, believes the authority has been exercising prudent management in recent years and wants to build on the good work to safeguard the town's finances for the future.

He said: "As part of this process, options for increases and reductions have been requested. At the last council meeting, councillors asked the cabinet to see whether reductions totalling £400,000 could be made in the next financial year.

"This review has now been completed and a number of possible options have been identified."

He added: "Members now need to discuss the best way forward for Preston. The council has to decide whether it wants possible reductions, whether it can invest more in vital public services and what the overall level of Council Tax should be for 2001/2002.

"Preparing budgets is never an easy task and there maybe some difficult choices ahead. We want the council to discuss these choices before seting the final budget in February."