THE new Labour Government will ease restrictions on council spending, say Burnley council bosses.

But an end to rate capping won't signal a spending free-for-all, adds finance chairman Peter Kenyon.

"Labour is committed to abolishing capping, but it will be freedom with responsibility and we will be expected to exercise self-discipline," says the man who has criticised spending limits imposed on Burnley by the Tory Government.

"We will only be able to raise money at a level we can afford - but it will allow us to deal more readily with urgent problems such as Burnley's crumbling housing stock."

The message is underlined by council leader Kath Reade who added: :"It would be silly for councils to go on a spending spree. That won't happen here." Both town hall chiefs welcomed Labour's "more flexible" approach to local government, with the promise of government cash being allocated on the grounds of need, rather than the present bidding shoot-out between councils.

Coun Reade said Labour would provide councils with the opportunity to draw up plans to enact long-term projects.

And Coun Kenyon added that capital receipts built up by authorities via council house sales could, under Labour's plans, be spent on improvements over the lifetime of the Parliament.

Burnley could also benefit from plans to divert other capital receipts to areas where they were most required.

Labour, he said, would also empower local councils to take on extra responsibilities from which they were debarred under the present system, such as tackling youth issues.

Coun Kenyon said he looked forward to more powers being returned to local government from central control - reversing the flow away from the town halls over many years.

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