ANDOVER MP Sir George Young has warned that big increases in council tax lie ahead, because of the changes in the formula the Government uses to distribute grant.

Speaking in Parliament he asked for assurances there would be no steep increases in future years.

The Minister said he hoped that steep increases might be avoided.

Commenting on the Gover-nment's record, Sir George said later that new figures obtained by Conservatives reveal how Hampshire has received a poor funding deal under Labour, pushing up council tax.

The new figures, provided in answer to a Parliamentary question, show only 66.1 per cent of the county council's needs were funded by government grants in 2002, compared to 68.3 per cent in 1997.

As a result, council tax has had to rise to meet this shortfall.

"Residents of Hampshire deserve a better deal," said Sir George. "Labour have tampered with local funding, forcing the council to run up council tax or else cut local public services.

"This is the ultimate stealth tax - engineered by the Government, but with local councillors taking the blame.

"The Government have been far less generous than they claim.

"Every year they spin headline figures of 'increases' in government grant, but they have loaded councils with new burdens, taxes and bureaucracy.

"Local authorities' needs have risen far faster than central government funding and local taxpayers have ended up footing the bill."