A POLITICAL row is brewing as the new Labour guard at Redcar and Cleveland Borough Council accuse the former coalition leaders of creating financial chaos.

The leader of the council, George Dunning, says the authority is heading for a £12m budget deficit next year.

Labour group chief Councillor Dunning is adamant that the former coalition administration is to blame for potential financial woes the council could be facing.

Using figures from council officers, Coun Dunning estimates the authority will need to find additional funding for the 2007-8 budget to ensure services are not cut.

He said: "The financial information provided to us by senior officers indicates that we have inherited enormous financial pressures on many different fronts, both in terms of finding the money needed to maintain services and preventing our buildings falling into total decay.

"This is not political scaremongering. These are the facts and figures presented to us by council officers and our challenge over the coming months will be to unravel the chaos we have inherited and put the authority back on an even keel, with sound finances and proper priorities."

But Councillor Glyn Nightingale, who was cabinet member for resources in the coalition administration, said the Labour group was setting up its excuses in preparation for breaking election promises.

He said: "If what Coun Dunning says is true, there would have been no chance of the coalition achieving its four-star rating from Government inspectors. No council can get an excellent rating unless its use of financial resources is in the top brackets.

"The coalition made sure we were."

The Liberal Democrat councillor added: "The frantic language and distortions presented by Coun Dunning confirm our election warning that Labour cannot be trusted."