CASH-strapped council chiefs in the Test Valley were tonight set to recommend an inflation busting council tax increase of 4.5 per cent.

Finance bosses have already revealed plans to cut around 60 jobs as they battle to plug a £1.8m hole in their budget.

The Tory-led authority is eyeing tax hikes that would see residents in an average band D property spending an extra £5.13 a year for borough council services.

Cabinet members were tonight due to be told that 23 vacant posts may have to be axed at the authority.

It would see five vacancies deleted in the planning and building department and three each in the chief executive’s office, environmental services and planning policy departments.

Under the proposals, a further 20 to 30 redundancies would also have to be made.

A package of concessionary travel measures for vulnerable residents looks set to avoid the chop after a special panel recommended it should continue.

If approved by Cabinet, the package would include items such as free bus travel for eligible residents and small-scale grants for community travel initiatives.

Last month council leader Ian Carr said the authority had found itself in an “unprecedented” position, blaming falling interest rates for the cash shortfall.