A pressure group is being formed in Winchester against massive council tax hikes.

Hampshire County Council is asking for 15% more money this year, while Winchester City Council voted through a rise of 7.5%, modest by comparison, but still two-and-a-half times the underlying rate of inflation.

Combining parish charges, and a police precept 29.5% higher than last year, the total annual bill for a typical Band D property in Winchester has soared to nearly £1,100.

The newly-formed Winchester District Tax Action Group (WDTAG) is calling for the above-inflation rises to stop.

Group activist, Michael Schofield, says the soaring council tax hurts people on low incomes, especially pensioners, who invested in property.

"Many of these people worked hard and invested their lifetime's economic effort into home-ownership, in the belief they could live in old age using invested life savings to augment a state pension.

"They had a moral right to make this provision for themselves , instead of opting for unreliable private pensions."

WDTAG wants more consultation between councils and residents' groups over how taxes are spent. The group also wants to generate awareness about a government review of council tax billing.

Westminster plans to re-value every house in Britain during 2005.

Said Mr Schofield: "The last valuation took place in 1991. Since then, prices have risen much faster in the South - so most houses here will be forced into much higher tax bands than equivalent ones in the North."

Hampshire is already reeling from a government redistribution of local authority grants earlier this year.

Councils deemed to be in less-advantaged regions, such as the North and Midlands, received a cash boost at the expense of wealthier areas like Hampshire.

The county council mounted a campaign, "Hands Off Hampshire", against the move, but still suffered a £45m drain to its £1bn budget.

* For more information on WDTAG, call Rosemary Conway on 01962 861277, or visit www.isitfair.co.uk.