GRANTS to dozens of hard-pressed charities have been frozen by Winchester civic chiefs.

The five main recipients, Winchester Area Community Action, Winchester Citizens' Advice Bureau, Bishops Waltham CAB, Trinity Centre and the Hat Fair, only received 91 per cent of what they requested.

The Hat Fair requested £55,016 and will get £33,825; Trinity Centre wanted £93,400 and will get £86,100; WACA wanted £105,375, will get £100,465; Winchester CAB, wanted £130,338, will get £127,158; Bishops Waltham CAB wanted £41,835, will get £40,615.

Mary Barnard, deputy manager at the Winchester CAB, said today: "This represents a drop in income. It means there are going to have to be harsh choices, and a decrease in what we can offer the people of Winchester. Our income is decreasing but our costs are increasing."

However, some charities did gain including Winchester and District Savers which is setting up a credit union to offer cheap loans to the poor.

Councillor Brian Collin told Cabinet that the council was under severe financial pressure: "We are grateful to the voluntary sector who have had to tighten their belts this time."

Civic chiefs have made the charity cutbacks as they set the lowest council tax increase in years.

It means Winchester City Council's portion of the council tax bill for a band D house has increased from £104.40 to £107.82.

But councillors have warned that there could be cuts to services next year.

The cabinet yesterday backed the proposal for a rise at 3.3 per cent, the level of inflation.

It puts the new payment for a band D house up to £107.82 per month. A final decision will be made at full council on February 28.

Councillor Kelsie Learney, portfolio holder for finance, said: "The small tax rise is good news for the council tax payer and was bought forward without cuts in services.

Cllr Learney said the council would soon be under financial pressure. "But it's important to recognise we face a big challenge next year. We will have to look at cutting services.

"We do have substantial reserves and we are debt-free. Once we start eating into them they will soon disappear."

Hampshire county council, which levies by far the biggest part of the bill, are proposing to increase their tax by 3.5 per cent, the police by 5.5 per cent and the fire service by 1.6 per cent, said Sheila Boden, director of finance, yesterday.

Councillor Patrick Davies, Labour group leader, said it was wrong that opposition councillors had been excluded from the budget-making process when the Liberal Democrats had no overall majority. He wants more spent on clearing litter, graffiti and grass cutting on verges, a source of chronic complaints.