TAXPAYERS across Southampton and Hampshire could see their bills rocket by almost a quarter if new government proposals are given the green light.

As well as the 23 per cent hike in tax, drastic cuts to services could be on the cards across the region as county council bosses endeavour to make up an £80m shortfall and the City Council deals with a possible £17m loss.

Today, Hampshire's top politician Ken Thornber was set to launch a "Hands Off Hampshire" campaign to get ministers to think again about taking money from the county to share between more needy areas.

It's the latest in the north-south divide wrangle about making sure there is a levelling out of resources across the country.

The massive cuts in budgets is the worst case scenario as a result of radical plans outlined by the government, which wants to introduce a fairer system of dividing cash between local authorities across the country.

If it is brought in, residents in a typical Band D household in Southampton could see their bills soar from £833.17 to £1024.80, a rise of £191.63.

The county's council tax for Band D households would rise from £734.67 to £903.64 - a hike of nearly £170.

The campaign is the county council's response to a 47-point draft paper which aims to get rid of the current system used to share out cash - called Standard Spending Assessments - and bring in a new, more equal system.

In Hampshire, the cash that could be lost is equal to the cost of 900 teachers - or two teachers in each school along with cuts in other services.

Councillor Thornber said ministers needed to sit up and listen - the move would be damaging and totally unacceptable - and he's asking for the support of every organisation, voluntary group, resident and MP to lobby Deputy Prime Minster John Prescott to ensure it doesn't take place.

Cllr Thornber said: "The aim of the Hands off Hampshire campaign is to make the government understand how damaging their proposals to change the formula funding would be for local services. The government cannot be serious about taking grant away from Hampshire and redistributing it to local authorities in the north and Midlands."

Southampton City Council leader June Bridle, pictured, echoed his view and said: "Obviously we wouldn't want cash taken away from Southampton City Council. If additional resources are going to be found for local authorities in the north then it should be new money."

Earlier this year Hampshire County Council put its council tax up by 7.9 per cent while the city increased its tax by 7.8 per cent.

Cllr Thornber added: "It is vital that we mobilise as many people in Hampshire including residents, businesses, MPs and voluntary groups to write letters and lobby government to reconsider its proposals.

"We will be asking people to write to their local MPs to get them to raise this issue in Parliament and to write to John Prescott to leave ministers in no doubt that such large increases in their council tax bills are unacceptable."