ESSEX County Council has been ordered to spend £200million it is hoarding in a “piggy bank” on front line services for residents.

Communities Secretary Eric Pickles revealed County Hall has more cash in reserve than any other authority.

And he said with 28 per cent budget cuts planned for the next four years and 140,000 jobs set to be axed nationwide next year alone, this could not continue.

He said: “I’m sure many residents would be shocked to find local authorities still have over £10billion in their piggy banks when they are hearing weekly scare stories of service and job cuts.”

But David Finch, councillor for County Hall’s finances, said most of the money was set aside for specific projects, including £60million on an overhaul of the county’s waste system. He said: “Essex is the second largest council in the UK.

“The level of reserves that we have are just over 10 per cent of the total expenditure that we have. When you compare us to other authorities, 60 per cent of other councils have got bigger reserves proportionally.

“We use our reserves not as a static device, but as an instrument of prudent management.”

In contrast, Colchester Council has £1.5million in its reserves. Paul Smith, councillor for finance, said: “The balances councils have built up are not the councils’ money. They have come from taxpayers.”