A BID to stop nearly £5 million being earmarked for Abergavenny cattle market in Monmouthshire Council's Budget was defeated.

The Labour group, the main opposition on the Conservative-controlled council, said the money should be spent on schools instead.

But Leader of the Council Councillor Peter Fox said such a move would be "disinvesting in the rural community".

The council agreed its budget and a freeze on Council Tax for the coming year and is one of only three local authorities in Wales, which have been committed to a zero increase.

Labour group leader Councillor Jim Higginson said: "The £5 million in the Budget for the cattle market should be removed and the money transferred to the education budget.

"The money for the cattle market should come from private sources."

Independent group leader, Councillor Simon Howarth, of Llanelly Hill proposed three changes to the Budget: the reintroduction of white bags for food waste, the county council to again take responsibility for public toilets and homes going through the probate process after the death of the owner, should be free of Council Tax for 12 months.

Councillor Fox said the three proposals would add £500,000 a year to the council's spending.

In response to Labour's suggestion he said: "That would be disinvesting in the rural community and it should be borne in mind that we are investing heavily in education."

Cabinet member for finance said there would be £750,000 over the next three years to help children with the transition from primary to secondary school and £150,000 to improve literacy and numeracy.

The council was also committed to meeting half the £80 million cost of the 21st Century schools programme

He said there would be £300,000 more on services for vulnerable people and there would be no increase in the price of Community Meals.

He added: The central platform has been to take advantage of the savings that have come out of the changes in the way we work to go forward, hopefully, over the next few years with a freeze on Council Tax,"

Leader of the Liberal Democrats Councillor Phyl Hobson said his group was "duty bound" to support the Budget - the first time in eight years - as no increase in Council Tax was proposed.

He said the council had been fortunate in being able to set a zero per cent rise in tax.

"One of the perverse effects of the credit crunch is that the cost of servicing debts is lower than expected because of low interest rates."

The meeting was the last to be held at the council chamber in Cwmbran.

Other key decisions included a standstill in the price of school and community meals, a continued commitment to invest in and improve the road network and a continuation in waste recycling services that have made Monmouthshire the top performer in Wales.

The members were told that despite significant funding cuts from the Welsh Government, Monmouthshire County Council continues to effectively manage its finances and expects to underspend its budget in the current year.

This is a result of changes in working practices, streamlining internal processes, improved debt collection and cost reduction programmes which have allowed the council to recommend increases to its spending on core priorities without increasing council tax.

Cabinet member for finance, Councillor Phil Murphy said of the proposals: "The budget details an increase in spending on schools and the vulnerable and no increases in the price of school meals and the community meals service while maintaining the current council tax rates. In summation we are able to freeze council tax rates and invest more into our main priority services."