COUNCIL tax in Hampshire could rise by up to seven per cent next year, it has been revealed.

County finance bosses say the rise could be as little as three per cent - but only if massive savings were made to the council's budget, which stands at nearly £1 billion per year.

The first stab at working out the county's budget proposals for 2005 was made by Hampshire's ruling Conservative Cabinet yesterday.

A rise of three per cent would see bills go up by £25.20 for an average Band D property. Hampshire County Council's element of the increase would go up from the current £840.15 to £865.35.

But if a rise of seven per cent is introduced, bills would soar from £840.15 to £898.96 - a rise of £58.81.

District councils and both the police and fire authority would also have to add in their elements to the bill.

So far, their budget plans have not been worked out.

Efficiency savings totalling about £9m are also being looked at by county finance bosses.

They include more efficient ways of "buying in" services for the council, such as building repairs and highway maintenance.

Members were given an outline of the options needed to balance Hampshire's books by county finance boss Jon Pittam.

He revealed that the council was likely to lose about £26.4m in government grants by March 2005. The loss would include the withdrawal by the government of a one-off payment of £7.5m made last year following massive protests by residents about council tax bills. He added that the low figure of three per cent was "unlikely" to be achieved.

Mr Pittam said: "There are going to be difficult political choices, particularly involving public transport and social services programmes."