Portfolio holder for finance at East Lindsey District Council, Coun Colin Davie, said he will be recommending that the caravan site stay open for another season.


A £1.5 million improvement plan for the pool has been put on hold for at least three months while ELDC looks for ways to plug a £2.5 million hole in next year's budget.


"The economic situation is deteriorating by the minute," said portfolio holder for finance Coun Davie at last Tuesday's ELDC executive board meeting.


"We have to cut our cloth accordingly. We can only deliver what is affordable."


ELDC has been squeezed by rising fuels cost, increased pay for its 740-strong staff and a collapse in seasonal income from its seaside car parks.


The dip in bank interest rates means that it is also receiving less interest from its £40 million cash holdings.


In addition, a precious £4 million remains at risk because of its controversial investments in troubled Icelandic banks.


* Do you think the caravan site should remain open? Email sean.topham@jpress.co.uk or Text us on 81800. Start your message with HNNEWS – please include your name and where you are writing from. Calls cost 25p plus the standard network charge.