Council housing, services grind to

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OLD HOME The Tory decision to cut public spending by local authorities by a staggering £360 millions has dire consequences for a whole range of services and thousands of jobs, and brings the threat of rate rises of 50% and over in some cities.

Nursery facilities are a foremost target for cuts in nearly every area; but these are linked to sweeping plans to axe education, transport subsidies, youth clubs, libraries and a whole spectrum of other services.

In case any Labour councils vote to defy the instruction to slash services, the Environment Secretary, millionaire Michael Heseltine, is proposing to include a penalty clause to deal with rebel authorities in a new Bill to come before Parliament in the next session.

Heseltine has made no secret of his desire to punish councillors who seek to use a halt Heseltine their powers over local spending to protect existing services.

But, not content to leave matters up to the Tories, Labour spokesman Roy Hattersley has added his own warning against 'another Clay Cross' • and urged councillors to use existing powers rather than present a frontal chailenge to the government.

Inflation

A combination of cash limits, spending cuts, last year's wage increases and Tory-fuelled inflation now poses many councils with implementing a 10% cut in services next year.

Even the Tory leader of the Association of Metropolitan Authorities, Tag Taylor, has balked at this prospect, I just don't see how tr overnment can possibly ask fo total cuts of above 7½%, which in themselves would be quite horrific."

Indeed city Tories have become increasingly embroiled in a factional battle with their rural counterparts, who have been attempting to secure a larger share of government support.

Taylor recently slammed into his Party rivals, pointing out angrily that "There are two types of Conservatives, those in the urban areas and those in the shires. The shire people-who tend to have two cars in their garages, pay only £100 a year rates on a standard three-bedroom house, and whose main traffic problems are caused often by cows crossing the road -are in no position to seek a change.

"Our own research shows that there has only been a slight shift in Government support to the cities who have some of the major problems of unemployment and social deprivation."

But there is no real division: amongst Tories on the virtual standstill imposed by Heseltine council house building through a £400 million spending cut.

The Tory-led GLC has led the way openly declaring its intention to end housebuilding. The GLC itself faces a £21 million cut in its housing budget, while the 32 London boroughs must cut back by• £87 million.

Tories elsewhere are meanwhile weighing in with their