CUTS in staffing costs and community grants and rises in car parking charges have been agreed to fund a low council tax rise for this year. Stroud District Council has approved a 1.9 per cent increase in its portion of the council tax – expected to be the lowest of all the district councils in Gloucestershire.

The authority has, however, made an 11th hour U-turn on proposals to slash grants to two arts organisations in the area.

Both Prema Arts Centre, in Uley, which receives £10,000 in funding from the district council, and Stroud Valleys Artspace, which receives £12,000, will now get their full grants after fears were raised that the Arts Council would withdraw their funding if the council decided to cut its grants to the organisations.

Gordon Scott, director of Prema, said: "I am absolutely delighted with the news, I always recognised that councillors had to make really tough decisions about their funding so I am pleased they have been able to revisit their decision."

The news comes as councillors were set to make a decision today on whether to cut funding to Wotton Pool and two other part-time sport centres in a bid to save around £170,000 over three years.

Members of the Wotton Pool committee have protested against the move, which would see control of the facility handed over to Wotton Town Council or the committee itself, and could force the pool to close. Members of Stroud District Council’s cabinet are due to rubberstamp the proposals, for cutting funding to Wotton Pool, Vale of Berkeley Sports Centre and sports facilities at Nailsworth Primary, at a meeting this morning.

In a speech at the budget meeting last Thursday Cllr Frances Roden, leader of the council, said: "We have to balance our budget needs with the tax demand on hard-pressed council taxpayers.

"We are managing to invest in what the district needs while still keeping the council tax increase to less than two per cent."

Senior officers at the council have identified possible efficiency savings of £720,000 each financial year until April 2014.

The Gazette has been told that a large proportion of this will be made in staff savings, mainly in natural wastage from people leaving senior roles and re-organisation of departments.

The council also announced it would increase parking charges and cut other grants, such as the rural and communities grant for small organisations. They will also make savings in advertising and consultancy.

Some councillors at the budget meeting said the authority should investigate borrowing cash to improve services during this period of low interest rates.

Cllr Sarah Lunnon (Green) said: "What we actually need at this moment is to take a brave decision like we did on the canal and borrow some money so we can fund some of our initiatives."

This was voted down by the majority of councillors.

* Stroud’s 1.9 per cent increase is part of the overall council tax charge, also made up by the county council, town and parish councils and Police Authority. Gloucestershire County Council is proposing a 2.3 per cent increase and this will be agreed at a meeting on February 24.