BRACE yourselves - council taxes in Hampshire could rise by up to a whopping seven per cent next year - about three times the rate of inflation.

That's the figure county finance bosses will be looking at if Deputy Prime Minister John Prescott approves plans to slash up to £14m from Hampshire's government grant.

If the rise went ahead, it would mean council tax on an average Band D property soaring from £844.56p to £903.64p.

The rise does not include precepts set by district councils and Hampshire police, which would push council tax in the county well over the £1,000 barrier.

Last year, finance chiefs set an inflation-busting 15 per cent increase after the government withdrew key grants of £21m from the county to redistribute to urban councils in the north of England.

Next year, Hampshire bosses are predicting the council could lose as much as £14m - with a further loss of £13m in 2005/6.

Council leader Ken Thornber warned: "The unsustainable council tax rises Hampshire residents are facing each year must stop. The impact of these rises on pensioners, people on low or fixed incomes and key workers is causing great anxiety."

Last week, the Daily Echo revealed how Cllr Thornber wrote to Mr Prescott to urge the government to fund council tax discounts for pensioners.

The council also commissioned a MORI workshop in July to look at how much people would be prepared to pay for services and met leaders from the voluntary, business and schools sectors earlier this month to discuss budget options.

Feedback from the meetings suggest that a council tax rise of between six and seven per cent to maintain existing services is the majority view.

Cllr Thornber explained: "We were compelled to set a council tax increase of 15 per cent last year to meet the shortfall left by the loss of £48m in government grant over three years.

"We had a choice - slash services or hit council tax-payers hard. We chose to protect what the government itself said were excellent services, to continue to meet government spending targets which they refused to fund properly and meet increasing demands for services.

"We have decided to start our budget consultation earlier this year and meet more groups to discuss possible spending options for next year."