by political editor Paul Francis

County councillors have backed a budget that will spare council taxpayers a hike in their bills but will mean a massive £97m of savings.

County Hall's ruling Conservative administration insisted the spending plans for the year would safeguard key services but faced opposition protests that the public would suffer from cutbacks.

There will also be a modest 1% pay rise for staff and a new £12m initiative to help people get a foot on the housing ladder by helping with mortgages.

But there will be less money spent in some areas and the authority is cushioning the blow by taking £6m out of its reserves. The budget will also pave the way for a controversial shake-up in the youth service and a re-organisation of libraries.

Some charges for services will increase and the council says it aims to raise £13m through its trading activities and extra government grants.

KCC leader Paul Carter said: "We have not butchered services or used spin, smoke or mirrors. Council tax has increased as a percentage of disposal income over the years. We have come up with an innovative and intelligent budget."

There would not be a "raft of library closures" and plans for youth centres would mean better services, he added.

Opposition Labour leader Cllr Gordon Cowan said the public were being misled about the budget and argued for a 2.5% increase in the council tax.

"Increasing the council tax would release £7.5m to spend on services straightaway that otherwise would be cut back under the Tory proposals," he said.

Liberal Democrat leader Cllr Trudy Dean said her party broadly agreed with the thrust of the budget but tabled a series of amendments urging more money for the youth service and the re-instatement of 23 school advisers jobs.

She said: "There will be cuts just as there were last year. You cannot cut £100m out of the budget and not affect some frontline services."

The government has provided KCC with a £12m grant to absorb the impact of a council tax freeze, but it is one-off money.

KCC is facing unprecedented pressure on its finances as it deals with a 28% cut in government grants over four years.

At the same time, it is coping with rising demand for some services, notably in social care for the elderly where it is having to find an extra £12m.

It has also had to find £22m to help turn around services for vulnerable children, which were heavily criticised by Ofsted in 2010 but are steadily improving.