NO council tax increase and no cuts in services – that’s the bold promise from Bournemouth’s council leader.

Bournemouth is taking up the offer of a Government grant to subsidise a freeze in council tax for 2012/13 – despite admitting this will leave them with another financial gap to be plugged the year after.

And acting leader Cllr John Beesley said that the council’s £150m deal with Mouchel, which will see council services transferred to the private company, will save the council around £27m over the next five years.

He said this meant they don’t need to cut services to balance the books, although some areas, including bus subsidy, libraries, arts and the Russell Cotes museum, will be reviewed to ensure they are as efficient as possible.

“There are no cuts in services for 2012/13,” he said. “We’re not going to close libraries, we’re not looking to restrict their hours, what we’re looking to do is to put more services into them to make sure that they are sustainable in the long term.” Asked if he felt residents were happy paying the same level of council tax to a council that directly provided fewer services, he said: “If your bin is emptied weekly and on time are you bothered?

“I don’t think people are. As long as you are still getting those services do you mind who delivers them?” He insisted Mouchel were currently so far delivering on their prom-ised savings but said delays in transferring services had caused them to adjust their predictions.

Last year, the council was predicting savings of £10m in 2013/14, £28m in 2014/15 and £39m in 2015/16 but these figures have now been amended to £6m in 2013/14, £16m in 2014/15, £26m in 2015/16 and £27m in 2016/17.

“I’m still confident in the 10 year plan that we will deliver the savings in the 10 year contract,” he said.

The council also still has a substantial rainy day fund of £19.4m, despite using £1.5m of reserves to counter overspends in adult social care and children’s social services and balance the books for 2011/12.