CASH-strapped Suffolk Coastal has decided it cannot afford to pay a recommended 25% increase in allowances for councillors.The Woodbridge-based council has decided to put on hold the large increase in the basic and special responsibility allowances.

CASH-strapped Suffolk Coastal has decided it cannot afford to pay a recommended 25% increase in allowances for councillors.

The Woodbridge-based council has decided to put on hold the large increase in the basic and special responsibility allowances.

An Independent Panel had recommended significant changes to the way that allowances are paid to district councillors to bring them in line with those paid by neighbouring and national councils.

Ray Herring, council leader, said: ''The Independent Panel produced a very helpful and comprehensive report, the recommendations of which the Full Council accepted in principle.

"However, the clear view of the meeting was not to implement the report with immediate effect, but that priority be given to our drive for increased efficiency and tighter budgets at a time when Local Government finances are under considerable pressure."

''Rather than approving a sizeable increase in allowances, we have opted for a rise in line with the latest National Local Government Pay Award. This means that the basic allowances and SRAs will rise by 3.5 per cent, bringing the basic allowance for a Suffolk Coastal Councillor to £2,484."

The Independent Panel recommended that the basic allowance paid to all

councillors be increased to an annual sum of £3,000, a rise of £600.