WHERE does the axe fall - and what does it spare? The blade slashing Herefordshire Council spending has two schools in its sights, while defending that spent so far on securing a new Hereford library.

This week, Council leader Terry James confirmed that wooing a private sector partner to the running of Hereford Butter Market is one option to offset expected income losses as rents are reduced and stall space stays vacant.

The prospects for this local landmark now, says Mr James, have to be examined on the same basis as those of its Cattle counterpart.

Current loss of income from both amounts to around £233,000 according to the authority's latest budget strategy.

The policy and finance programme panel was told yesterday that it was 'not sustainable' to bargain for this sum in future budget deficits.

It is already apparent that if the Council is to deal with unavoidable spending increases amounting to £2.6 million over the next three years, then it must face up to above inflation council tax rises or significant savings.

In cash terms, the Government has given Herefordshire Council a raise, increasing its standard spending assessment for 2002/2003 by £6.2 million.

That offers a figure of £143,653,150 as a platform for fiscal planning.

However, as last year, some of the apparent clarity is lost with the ring fencing of funds to particular services and the inclusion of specific grants within headline totals.

q Cattle Market - present and future. See page 104.