COUNCILLORS last night back-tracked on a scheme to put a hostel in a Valleys street - and apologised to locals for not asking them first.

Caerphilly council planned to sell a property in Woodbine Road, Blackwood, for use as a home for vulnerable young people.

But last night they agreed the scheme should be reconsidered and admitted they were wrong not to consult with people living in the area about the plans for 15 Woodbine Road.

The Argus reported last week the Plaid Cymru ruling group decided the empty house should be sold to a housing association, for youngsters leaving local authority care. Locals knew nothing of the proposals until a few days before the decision was made and collected more than 100 signatures in a protest petition.

More than 30 residents attended the group had less members present at yesterday's full council meeting, their vote was boosted by independent councillors Ashley Thomas and Bob Wilcox.

Only one member, Liberal Democrat Councillor Duncan Anstey, abstained from the vote. Labour leader Councillor David Waring said adding the extra £380,000 would mean a council tax increase of 9.3 per cent, and would cost taxpayers less than an extra 20p a week.

Director of lifelong learning Phil Cooke has already warned that a third of the 49 schools in Monmouthshire could face a crisis in their budget, and this could possibly lead to teacher redundancies. An amendment by Councillor Verona Nelmes to increase bills by 11 per cent and divide the extra cash between all departments was defeated.

The council voted for the cabinet's proposal for a 7.5 per cent increase, which gives an average Band D householder a bill of £614.55.

To meet their spending target of £91,821,630 , and keep bills down, the council has to take £547,904 from reserves.

Council leader Councillor Andrew Crump agreed with the sentiments of Labour members and said it gave them no pleasure to present their budget.

Councillor Graham Down said: "There is a shortfall of about £2million between what the Assembly says we need to spend and what they say we can spend."

*PICTURED: Some of the residents who protested at the hostel plan