COUNCILLORS pruned around £46,000 off next year's economic development spending in South Lakeland during an agonising meeting.

Grants awarded to new and expanding businesses, and funding for Furness Enterprise and Cumbria Inward Investment Agency, were among the pots of money reduced reluctantly by South Lakeland District Council's economic development committee.

The shadow cabinet of councillors and officers suggested that savings of between £50,000 and £ 100,000 could be made in economic development.

Cuts proved unpopular with councillors, who felt it was the wrong time to take money from efforts to promote industry and boost jobs.

Director of amenities and development Martin Jayne said "a financial cloud" was hanging over the council.

Every service had to be looked at, and harsh decisions had to be made.

Budget cuts agreed on next year's economic development budget included:

l Cutting the pot of money for grants to new and expanding businesses from £40,000 to £ 30,000.

These grants can be awarded to companies outside assisted areas such as Furness.

Members heard the grants had created 112 new jobs and put £1.5 million into the economy since they were introduced four years ago.

l Cutting marketing support grants - such as helping companies to set up websites and print new leaflets - from £5,000 to £4,000.

l Reducing the number of business liaison meetings held each year from three to two.

Each meeting costs around £250 for venue hire and refreshments.

l Cutting the amount of money given to Cumbria Inward Investment Agency from £20,000 to £15,000.

l Cutting the grant given to Furness Enterprise from £25,625 to £20,000.

l Halving the budget for Yellow Pages and radio advertising to £500.

l Halving the sum given to the agricultural and rural demonstration centre at Lane Farm, Crooklands, to £5,000.