BOURNEMOUTH council now has more than £18 million stashed away in its reserves – an increase of around £4 million in the past financial year.

The ruling Conservative administration called the level of savings “sensible and prudent” at a time when it is anticipating savage cuts in government funding.

But an opposition councillor has warned that residents will not put up with cuts in frontline services when they know the council has such a healthy nest egg.

Poole council has also managed to bolster its reserves recently – stashing away £3.4 million during 2009/10 to take the total to £8.3m.

Bournemouth council recently came in for criticism from the Audit Commission for appearing to understate the level of its reserves during the 2009/10 financial year.

Cllr John Beesley, cabinet member for resources, said this was not the case and pointed out that much of the additional money, including a one-off payment of VAT interest, was received very late in the financial year.

In addition, the council is facing potential budget deficits of up to £7.2 million in the next five years.

“We’re talking about a business with a gross revenue budget of £450 million and a government funding settlement that’s probably going to be greatly reduced,” he said.

“I think this is a very prudent decision. If we didn’t do it, we would doubtless later be asked why we didn’t make adequate provision for the bad times.”

In his weekly blog, leader of the council, Peter Charon, said: “There may be some who say that we have actually put too much aside for a rainy day but every penny of ouAr reserves has to be “risk assessed” against our present budget pressures and in addition we are anticipating a very increased financial risk following the government’s spending review due next month.

“Unlike other councils who have “raided their reserves” and are in a far worse position than Bournemouth, we are in a much better position, but cannot, and will not, be complacent.”

But Labour leader Cllr Ben Grower said: “This money must be used to protect frontline services from the savage cuts of the coalition government.

“There is no doubt that the coalition is going cut far more than is necessary and it will be the poor people of this town who will suffer.”