MONMOUTHSHIRE council has performed a dramatic U-turn on funding for a flood prevention scheme.

Concerns had been raised by Monmouth's Assembly Member David Davies that funding for various schemes did not appear on the council's budget for 2004-2005.

Monmouth escaped serious flooding after last week's torrential rain but it has proved vulnerable in the past.

Residents were worried that halting flood prevention schemes could have condemned them to problems in the future.

But now the council's accountants have found an extra £856,000 that can be used on various capital projects and to limit the council tax increase. The extra money will not affect the council's revenue shortfall, which has led them to charge for some social services.

Having being told of the windfall the council cabinet agreed to contribute £225,000 to the Wonastow Road flood alleviation scheme so that it can go ahead later this year.

The cabinet also agreed to increase this year's council tax by 7.9%, one per cent less than originally proposed.

Not including the police precept, which has not yet been set, this would mean an annual increase of £53.30 or £1.06 per week for those living in Band D properties.

Gwent Police are considering increasing the police precept by 16.8 per cent which would add an extra £20 to the council tax bill for a Band D property.

Cabinet members have also given the green light to proposals to pedestrianise the historic Monnow Bridge at a cost of £42,600 and for a cash injection of £250,000 to improve the county's rural roads.

Council leader David Waring told the Argus: "We have consulted widely and are using this additional £856,000 in areas that everyone will appreciate.

"The views of the public and the ability to pay have also been considered, particularly those of our older residents who are often on fixed incomes. "I am therefore delighted that my cabinet has been able to reduce the proposed council tax increase from the original figure of 8.9% to 7.9%.

"The cabinet has always been 100% committed to the Monmouth flood alleviation scheme, which will transform the lives of many people in Monmouth, and the windfall cash means it can go ahead."