A ROW has broken out over a financial rescue plan for cash-strapped Shepway Council that was claimed could save council taxpayers £600,000.

Shepway’s ruling Liberal Democrat leaders say an offer by Conservative-run Kent County Council to help avoid cutbacks to services is “pie in the sky” and that only about £100,000 can be saved.

The Government told Shepway last month it would be capped for setting a budget which saw a 29 per cent hike in council tax bills.

County Hall Tories then offered to help Shepway after the intervention of local MP and Conservative leader Michael Howard.

However, Shepway now says KCC’s savings plan is not workable – a claim County Hall firmly denied.

Leader Cllr Linda Cufley (Lib Dem) said: “There are some savings to be made, which we welcome, but we will be lucky if these amount to even £100,000, not the £600,000 Mr Howard promised. The figures do not stack up.”

KCC presented Shepway with three options for saving money, which it said would amount to ten per cent of the money needed from council tax payers.

These included using the county council’s in-house trading company to provide various supplies and services, saving £300,000 and using KCC as a contractor for grounds maintenance, saving £200,000.

Cllr Nick Chard, KCC cabinet member for finance, said he was perplexed by Shepway’s claims.

“As far as I am aware there has been no disagreement about the level of savings which could be achieved. Whether Shepway wants to sign up to everything we have suggested is a different matter. The longer Shepway takes to say it wants to go ahead, the smaller the savings will be,” he said.

Talks about the savings package are expected to continue despite the political row.