LEESON House, the Juniper Centre and Colehill Library have all been saved from the axe as Dorset County Council's Cabinet wrestled with the budget.

And thanks to the discount on council tax of second homes being reduced and last minute adjustments this week by the government which allowed an extra £2.3 million to be clawed back, Dorset taxpayers are facing a 4.9 per cent increase in their council tax bills.

It means a Band D tax bill for 2004/5 will be £918 not including police, fire, district and parish precepts. Currently people pay £915 which includes the fire authority's element but this will appear separately on the bill in the future.

It puts council tax below the capping level but around £3 million of cuts have still had to be made and a number of jobs will still be lost.

Council leader Tim Palmer said: "This has been a very difficult time with public meetings, working parties and officers burning the midnight oil. No stone has been left unturned and no issue left undiscussed as we attempted to balance the budget.

"Technical adjustments by the government which are only relevant in terms of capping has resulted in effect of a five per cent increase in bills but the money given to us has not changed."

And he warned the council tax discount on second homes was a one-off benefit which wouldn't be available in the future.

The council had been facing £5 million of budget cuts and more than 100 job losses before the additional £2.3 million was channelled back.

Social Care and Health received the lion's share of the extra funding allowing £810,000 to be put back into services.

It means the Juniper Centre is saved, the opening of the new Verwood Day Centre is delayed till January 2005 instead of April 2005 and £300,000 used for service level agreements for joint working with other children's agencies, retained. Day centres for the elderly will also stay open five days a week.

But social services, which will start the financial year with a £500,000 deficit, will face £1 million of cuts and jobs losses.

In Education all outdoor education is saved and an extra £300,000 channelled into it.

Cabinet member for education Angus Campbell praised press reports for "concentrating the minds". He said: "The public has made its point very clear that outdoor education is an important part of education."

In Corporate services an extra £60,000 was given back to save Colehill and two other libraries in the west of the county threatened with closure.

The budget recommendations will still need to be ratified by full council on February 12.