TOWN hall leader Kath Pinnock has hit out at the Government after it slashed £750,000 off Kirklees Council's expected annual grant.

The local authority will get £325.25m to spend on services, including education, in 2005/06 - £750,000 less than it was promised in November.

But even though the grant has been reduced, Clr Pinnock has pledged to keep the council tax increase to less than 5% for the second year running.

This will be welcome news to homeowners after hikes of 8.2% in 2003 and 6.2% a year earlier.

She said: "I am disappointed the Government has taken this decision at the very last minute to cut what we had been told we would get.

"Yes, it has increased the amount of money it spends on local authorities - but it is already asking us to spend that money on more things.

"Our budget had been sorted out and the money we were getting had been put into the areas where it was needed.

"Now we will have to have a rethink."

Clr Pinnock also warned services could lose out and financial decisions had been made harder.

She said:

"It feels like Kirklees Council, which has been singled out for praise, is being punished. Neighbouring councils don't seem to be treated in the same way we are.

"Calderdale for example gets £16m more than us. But we will work as hard as we can to make sure we continue to improve."

Nationally local authorities were given £60bn by the Government - a rise of 6.3% on the year before.

It is the eighth successive year the Government has increased the annual grants above inflation.

Local Government Minister Nick Raynsford said he expected all authorities to use their money to ensure a good level of service.

He said:

"Authorities should be in no doubt that we will again use our capping powers to protect council taxpayers from excessive increases."