A COUNCIL chief has rejected a Government minister’s claim it should sell off its assets to avoid tax hikes and protect frontline services from spending cuts.

Durham County Council deputy leader Alan Napier spoke out after Communities Secretary Eric Pickles claimed council reserves had “rocketed” in recent years and town halls should be making better use of assets to keep taxes down and protect services.

Mr Pickles’ office pointed to Durham as having the sixth highest “surplus assets” of any council in England, amounting to £62m.

Manchester topped the list at £166m, while Gateshead was tenth, with £49m.

However, Councillor Napier said the council was only allowed to spend money made from asset sales on new capital items, such as buildings, vehicles or infrastructure – not cutting council tax or protecting services.

“We do have surplus assets of £62m which includes both land and buildings, including former school sites,” he said.

“Most of these sites are either being sold, up for sale or in the process of being put up for sale.

“When sold, our hands are tied as to what we can spend the money on as the receipts are ring-fenced and can only be spent on new capital items such as buildings, vehicles or infrastructure.

“I would have expected Mr Pickles to know that receipts from surplus assets cannot be used to reduce council tax or protect frontline services.”

The spat comes as Durham’s Labour cabinet is poised to back a 1.99 per cent hike in council tax tomorrow (Wednesday, February 11) – the highest allowed without triggering a costly referendum.