THE BILLS of residents paying the second highest council tax levels in Britain are expected to be slashed next year.

Moves put to Redcar and Cleveland Council could see £17 cut in Band A bills and reductions right across the scale.

Chief Executive Colin Moore told members at a meeting of the Council's Executive on Tuesday that the local authority is on track to make £4.2m savings.

That would be achieved through a combination of departmental savings, adjustment of budgets that consistently underspend, a shake-up in the senior management structure and efficiency savings.

If the package can be delivered, Mr Moore said the council can begin to be 'reasonably optimistic' about its budget position, offering 'scope for a combination of Council Tax reductions and growth in services.'

Department savings of £1.9m will lead to the loss of 28.5 posts. Proposed management structure changes would reduce the number of council departments, saving at least £200,000. A similar amount would result from adjusting underspending budgets while efficiency savings should release another £1.9m.

Mr Moore said: "I am not pretending it will be easy to achieve the targets in these proposals, but I do believe they are both achievable and desirable, both for the authority itself and the people we serve."

Council leader David Walsh said Redcar and Cleveland has had to struggle for far too long with the double dilemma of rising council tax levels and falling services.

"If we can deliver the package of measures that has been put together, there is the chance for the first time in many years of the relative luxury of being able to contemplate a much more acceptable 'double' - making some reduction in the council tax coupled with targeting some resources on frontline services most in need of support," he said