IT is important to understand the reason why the Malvern Hills District Council has found itself in such grave financial problems and why, as announced in the Malvern Gazette, there are plans to raise Council Tax and delay expenditures, for instance, on the sports hall.

The crisis has arisen because of the the Liberal Democrat-led former administration. In particular, little thought was given to the effect of spending a very large proportion of the 'Malvern Millions', often on projects requiring public subsidy. This depletion in income-bearing assets has made a big hole in the Council's revenue. This it can ill afford.

By contrast, Wychavon District Council earns one-third of its income from investing its capital assets. One effect of this has been that since there has been a Conservative administration in Wychavon, Council Tax has risen by no more than the rate of inflation.

TOM FALCON, Worcester Road, Malvern.