Blyth Valley Labour MP Ronnie Campbell (pictured) branded the summer event 'a weekend out for toffs'.

He strongly criticised Northumberland County Council - which is in the midst of making budget cuts totalling £40m over two years - for earmarking £80,000 to stage the high-profile equestrian event.

Rosie Winterton says she is confident that local government in Northumberland is "much better placed" under unitary status than it would have been if the old two-tier system of a county and six district councils had remained.

Her comments come in the wake of the newly-established unitary council having to make £26m in budget cuts last year and planning £20m worth of savings this year, with more pain forecast to come in 2011/12.

A progress report on the review reveals hundreds of people have made their views known on whether parking fees should be imposed across the whole county - rather than just in selected towns.

More than 560 people have signed three separate petitions calling for an equal policy across the board, with charges being made in all principal towns.

It was planned to put up the annual charge for the service from £20 to £25 in March - to bring in an extra £60,000 and help the county council achieve tough budget savings.

Now the saving will have to be found elsewhere after Conservative and Labour councillors joined forces to defeat the move at a meeting in County Hall on Wednesday.

The eight parish and town councils were established last summer to boost local democracy following the abolition of Blyth Valley and Wansbeck district councils, and the creation of a single unitary authority for Northumberland.

Now it is being suggested that the councils - covering Blyth, Ashington, Newbiggin, Cramlington, Seaton Valley and Bedlington North, East and West - should form an official federation with a joint managing board.

Blyth Valley MP Ronnie Campbell is writing to Liberal Democrat leaders at County Hall and asking them to "stop hitting" the elderly population of the county.

He says the recent announcement the council is axing a scheme which provides cut-price taxi travel for hundreds of pensioners who are unable to use buses is the latest in a damaging series of cost-cutting measures affecting older people.

It was feared that around £30m worth of savings would be required to balance next year's budget but the Department for Communities and Local Government (DCLG) has allowed councillors to pay for some costs from the capital budget.

The authority had submitted four bids for capitalisation in respect of potential losses on Icelandic investments of £9.1m, for £6m in strain on the pension fund, £2.8m for enhanced redundancy and £1.4m for statutory redundancy.

County council leaders expected to be told yesterday whether ministers will allow them to use a financial loophole to avoid having to make almost £30m in savings this year.

But last night - as the authority revealed it has dropped plans to close a number of tourist information centres in Northumberland - there had still been no decision from the Department for Communities and Local Government (DCLG).

More than 800 vulnerable pensioners across the county use the scheme, which allows them concessionary travel in taxis because they are unable to use other forms of public transport.

They use council-issued vouchers, tokens or passes to pay for taxi trips to the shops, GP and hospital appointments or to visit relatives and friends.

Cash-strapped Northumberland County Council - which is having to make budget cuts of up to £50m over two years - is thinking of using its capital resources to help would-be home buyers who are being frustrated by the continued squeeze on lending.

A report is being prepared for the Liberal Democrat executive in March on the possibility of the authority giving mortgages "in certain circumstances" to applicants unable to secure a loan from commercial lenders.

The Liberal Democrat administration at County Hall has drawn up the revised savings for 2010/11 after carrying out public consultations on initial £16m proposals published in November.

They will be discussed by the executive next week - and are based on the assumption the Government will allow the council to capitalise its £10m redundancy costs this year, cushioning the impact on the revenue budget.

Political opponents on the county council have clashed over a demand for a better system of repairs and maintenance - amid claims that 'small craters' have appeared on some roads which are both dangerous and potentially damaging.

Conservative councillors are calling on the Liberal Democrat administration to urgently bring in an improved system for looking after roads, pavements and bridges - and have condemned what they say is the current 'muddle through' approach.

Members of the public are welcome to attend the meeting, which starts at 6pm in the Spartan Centre, Croftway Primary School, William Street, Blyth.

The committee covers business for the Blyth, Ashington, Bedlington and Cramlington areas, and county council executive member for corporate resources, Andrew Tebbutt, will be there tomorrow to give feedback from recent budget consultation meetings, and outline the next steps in the process.

Northumberland County Council is trying to get back to a normal bin collection routine.

A spokeswoman said: "There has inevitably been disruption to the bin collection service in Northumberland due to the recent winter weather conditions - particularly in the more rural areas of the county.

"The council is asking residents to refer to the normal collection timetable for their area, and place the correct coloured bin out on the next scheduled collection day. Where a bin has been missed the council will collect additional bags of waste on the next visit.

More than 1,600 county council workers faced the prospect of not having their wages increased this year to help the unitary authority save more than £1m.

The proposed freeze on pay increments - which sparked the threat of a ballot and possible industrial action by public sector unions - would have affected many low-paid employees such as refuse collectors, road workers and kitchen staff.