THE annual allowance paid to the Mayor of Burnley is set to be increased to take income tax into account.

Members of the council executive will be asked tonight to consider the payment for the current year as it became subject to tax from April 2001.

This year £5,800 was provided for the current Mayor, Coun Jack Alston, to pay for clothing, out of pocket expenses, cost of meals between engagements and expenses associated with out-of-town engagements involving an overnight stay.

In a report to tonight's meeting officer Ian Woolstencroft says the council has been aware for some time that Inland Revenue may consider that the mayors' allowance should be subject to tax.

The executive will be asked to approve in principle an increase in this and future years to negate the introduction of tax.

they will be asked to approve a supplementary estimate of £1,636 for the current financial year and to increase the mayors' allowance from £5,800 to £7,436.