County's tax rise lowest in 35 years

County bosses also pledged there will be no cuts in services during a marathon six-hour budget meeting at The Castle yesterday.

The rise will see an average Band D property's council tax bill increase from £840.15 to £869.40 in 2005/06.

The bill does not take into account the amount charged by Hampshire's police and fire services as well as district councils and parish council bills which are raised separately.

Last year, the total bills faced by council tax payers in the county averaged about £1,148 for a Band D property when police fire, district and parish councils were taken into account. The county council's share of the bill alone rose by 4.7 per cent.

Hampshire's ruling Conservative group also agreed to a Labour proposal which will give the county's youth service an extra £250,000 this year.

The pledge was voted through by members of the Tory, Labour and Liberal Democrat Groups - believed to be the first Labour amendment to be agreed unanimously in the county council's history.

Leader of the council, Councillor Ken Thornber said: "I am in a generous mood. It will be paid for by savings which by hook or by crook I will find."

But a Liberal Democrat amendment which would have pegged council tax increases to 2.5 per cent was defeated by the ruling Conservative administration.

Other headline Tory budget proposals this year include spending £100,000 on sending teams of officers to help rebuild Sri Lanka which was devastated by the Boxing Day tsunami.

County bosses are also planning to spend £200,000 in a graduate training programme to find the county's senior managers of the future.

Cash is being saved by reducing staffing costs - thanks to the introduction of more efficient computer systems which need fewer workers.

But there will be no compulsory reduction in staff numbers and the savings will be achieved through natural wastage and redeploying staff in other departments.

Bosses expect a 14 per cent reduction in staff numbers in some departments over the next three years as a result of the changes.

Earlier in the debate, councillors were told by Mike Schofield from the campaign group SHOUT (South Hampshire Opposes Unfair Taxes) that the county's proposed 3.5 per cent council tax rise was "inflation busting."

The group had demonstrated outside The Castle along with the Isitfair campaign about the rises just before the meeting started.

Mr Scholfield told members that the council tax system was "fatally flawed."

Cllr Thornber said: "Our budget proposals this year is for a council tax level of just 3.5 per cent - in line with retail price inflation in December 2004. It is the lowest local tax increase for 35 years since 1970/71 - the year before decimalisation."

Hampshire County Council has asked the Daily Echo to point out that county bosses are looking for a 14 per cent reduction in some office staff over the next three years and not a 40 per cent reduction in staff as was reported yesterday. The mistake was due to incorrect information supplied.