AN air conditioning system for the council chamber at Browfort is likely to be the first victim of a £1 million cost-cutting programme being looked at by Kennet District Council.

Director of resources Frank Marshall told councillors on Tuesday that the council's dismal financial prospects continue and savings of about £1 million will need to be made if the council tax increase for 2007/08 is to be kept down to five per cent.

Once again, staff costs are the main contributor to the prospective deficit, with inflation on staff costs estimated at £300,000 and the effect of a pay and grading review at around £350,000.

Inflation on fuel costs is likely to add another £80,000 to the council bill and increased contributions to the Wiltshire Pension Fund £130,000.

The council is also counting the cost, estimated at £234,000, of losing the Ministry of Defence refuse contract, which has been awarded to a national company following a Whitehall review of spending.

The council already knows that it will receive an extra £113,000 from the Government through its revenue support grant next year, but this is a drop in the ocean compared to the council's additional responsibilities in licensing, decriminalised parking and recycling.

The council has also commitments in refurbishing its three leisure centres in Devizes, Marlborough and Tidworth, in social housing, in building new public conveniences in Devizes and Marlborough and in setting up software for e-government.

Tuesday's meeting of the council's resources executive committee agreed to keep an eye on all expenditure, particularly staff levels, which could well mean fewer staff leaving being replaced and the work being shared among those remaining.

The first casualty of the cuts is an air conditioning system for the council chamber, which has been likened to a sauna or the Black Hole of Calcutta during the recent summer heat.

Councillors asked for a report into the costs of a ventilation system in the room and officers brought back three options, with costs ranging from £10,000 to £65,000.

In view of what they had just been discussing, councillors agreed to shelve the project for the time being.

Coun Catherine Callow said a more eco-friendly option would be to allow councillors and officers to dress more casually during the summer months.

She said: "People shouldn't have to wear jackets and ties all the time."

Coun Tony Duck suggested the building was overheated and that money could be saved by reducing the ambient temperature from 21 to 19 degrees Celsius.