HAMPSHIRE residents are likely to see their council tax bill rise by between six and seven per cent next year in a budget which would see no cuts in services but leave little room for improvements either.

In an exclusive interview with The Gazette, Cllr Ken Thornber, leader of the county council, said the authority was working towards that sort of figure, which would be less than half the 15 per cent increase imposed this year.

Mr Thornber said much depends on how much the council receives from the Government, which it should know towards the end of next month.

But Cllr Thornber added: "I am working on the basis that at the moment to stand still would increase council tax by six-and-a-half to seven per cent."

He added: "I am working as hard as I can to ensure we don't get a double figure increase."

The proposed increase would cover salary and price increases and other factors, including requirements by the Government to increase spending on education and social services above the amount given by the Government for those services.

Cllr Thornber said: "I don't begrudge a pound to schools or social services, but what I do say is: 'If you are insisting on these things, you should fund them much better'."

The county council has already embarked on a consultation exercise with taxpayers and has met with representatives from various sectors.

Preliminary feedback suggests a rise of six to seven per cent to maintain existing services is the majority view.

A second round of meetings is due to take place, together with a telephone survey of 1,100 Hampshire residents in late January and February.

The county council placed the blame for this year's massive hike in tax bills on meeting Government targets and increasing demands for services after the Government redistributed grant money to authorities in the North and the Midlands.

Hampshire lost £21million this year and the county council is expecting to have a grant loss of up to £14million next year, with a further £13million loss the following one.

Cllr Thornber has written to Deputy Prime Minister John Prescott urging the Government to fund council tax discounts for pensioners.

Mr Thornber said: "The impact of these rises on pensioners, people on low or fixed incomes and key workers is causing increasing anxiety."