High Noon

City chiefs are drinking in the last chance saloon - with the prospect of Deputy Prime Minister John Prescott stepping in to run Southampton if party leaders fail to set a budget at a crunch meeting tonight.

Residents have been left in limbo after civic chiefs could not agree a budget for the first time in the city's history.

City insiders say that the ruling Liberal Democrats are no closer to doing a deal with either the Labour or Conservative group than they were when the parties first failed last Wednesday.

A hit squad of government civil servants, answerable to Mr Prescott, could be sent to run Southampton's affairs if city chiefs don't set a council tax by March 11.

They would have the power to force city bosses to set a budget and would effectively run services in Southampton.

Government officials would then dictate how the authority should spend its cash before returning to Westminster, leaving local councillors at the Civic Centre to carry out their requirements.

The Daily Echo understands that for the past seven days a series of tense meetings have been staged between leaders of the three groups to try to resolve the crisis.

However, both publicly and in private, city bosses admit they are no closer to a compromise than they were a week ago.

The main sticking point is still the Liberal Democrats' plans for fortnightly rubbish collection which have divided opinion in the city.

The Lib Dems continue to insist the scheme is popular but both the Labour and Tory groups are trying to force them to scrap it.

With all three groups sticking to their guns, it means Southampton is still facing the serious prospect of being run from Whitehall.

City council leader Councillor Adrian Vinson said that his group had offered an independent review of the controversial scheme, but only if it were based on evidence.

He said: "We are continuing to work to achieve a council tax acceptable to the majority of council.

"Of course, if we fail by March 10 then the Office of the Deputy Prime Minister would no doubt have an interest."

He added: "We believe the twin bin scheme is a good scheme. The Liberal Democrat group has consistently offered compromises and concessions, but that compromise must be based around the production of evidence.

"We are not talking about intransigence. We are talking about very real financial implications and very real implications for the environment."

Labour group leader Councillor June Bridle retorted: "A variety of budget options have been explored but, regrettably, the Liberal Democrats are intransigent over one issue - the restoration of the weekly waste collection.

"The Conservative leadership have shown support for the Labour position over the bins but refuse to vote for any budget put forward, amended or not, by a Lib Dem administration."

Tory group deputy leader Councillor Royston Smith said: "The Liberal Democrats are running a minority administration which a majority of the city did not want. Therefore, it is incumbent on them to compromise."