HARD-up Exmoor National Park Authority has agreed to increase spending for the coming financial year by less than the rate of inflation.

The rise was dictated by a meagre 2.5 per cent increase in Government funding for the authority.

The authority set a £2.369 million budget for the year 2000-01, which was just £58,300 more than in the current year.

Its levy on the four local councils which provided a quarter of its income was also increased by the same 2.5 per cent.

West Somerset district and Somerset county councils will each be asked for £211,429, while North Devon district and Devon county will receive bills for £84,571 each.

Chief finance officer Charles Burrows said expenditure was determined by the size of the park authority's Government grant, which for 2000-01 was £1,777 million.

Mr Burrows said there was some comfort in the fact the authority had been able to maintain its spending level in real terms.

But there was disappointment at the effect the settlement would have on the delivery of national park purposes.

Mr Burrows said: "Percentage increases, irrespective of size, when applied to a low expenditure base generate small sums in absolute terms."

He said there was a need for Government settlements to reflect more accurately the standard costs borne by all authorities whatever their size.

A briefing paper was therefore being prepared to help authority members make strong representations through their local MPs.

National park officer Dr Nigel Stone also highlighted the lack of funds available to the authority.

Dr Stone said the park was only just able to meet its recurring needs and had little scope to start new projects without attracting external funding.

l Somerset County Council finance director Chris Bilsland has warned his authority's share of rates bills was likely to rise by seven per cent from April.

Mr Bilsland said it could leave the county at risk of being called-in by Deputy Prime Minister John Prescott for breaching the Government's unofficial 6.8 per cent cap on Council Tax rises.

He said the authority last year increased bills by more than the Government's recommended limit but managed to avoid being called-in for questioning by the Minister.

Mr Bilsland said the Minister recently sent Somerset a further letter of "guidance" identifying the proposed hike as above average.