RESIDENTS in the south face the prospect of yet another costly hike in their council tax bills.

Bosses at Hampshire County Council are looking to raise £9m from the public's pockets because of a massive budget shortfall.

Government "scrooge" spending targets and the council's own overspends have been blamed for leaving the authority in the red.

It was revealed last night that taxpayers in the county could be left facing a bill increase above the nine per cent currently feared, mainly because of the dire state of Hampshire's school funding.

Residents could also be hit by a double whammy of being asked to fork out more for using council services.

The suggestions came as members of Hampshire County Council's cabinet placed proposals for next year's budget under the microscope.

Under the current feared increase in council tax, residents in the average band D property could face a £61 rise in the council's bill demand, taking it to £741.58. The rise is needed to meet budget pressures including a feared £1m overspend in social services, a £1m increase in the fire service budget, £1.5m worth of cash demands racked up across departments, a £1.2m rise in staff costs and a £4m financing gap in the council's building programme.

Council leader Ken Thornber has vowed that whatever happens services will not be cut to keep the increase down. But education boss councillor Don Allen warned his fellow cabinet members that he could be coming cap-in-hand for even more money.

This year's government assessment of the council's spending needs for education is the second lowest of all the county authorities.

The department also lost vital funding thanks to a government shake-up of how post-16 education is run.

Cllr Allen said: "I may well be making a case for further resources and if that means we have to go with budget increases that are over the eight to nine per cent I will be supporting that."

Councillor Michael Woodhall suggested that the budget could be shored up by increasing the council's fees and charges - currently bringing in £40m - by ten percent.

Cabinet members also urged Hampshire's fire chiefs to better balance their books to help fight the increased budget demands.

They want members of the Hampshire Fire and Rescue Authority to reconsider a proposed eight per cent increase in their budget which would leave the council needing to find £1m.

Members of the Tory-run cabinet are also pressing for the fire authority to review its whole budget-setting process.

During the meeting, political chiefs from all three parties agreed to issue a joint edict condemning the level of money freed up by the government.

Cllr Thornber said: "Government continues to shift the financial burden onto local people instead of funding key services.

"The people of Hampshire have made clear that their priorities are core services such as schools, social services and roads.

"I am determined therefore to do everything I can to ensure that these key services continue to be properly funded."

Service budgets will now be considered by the relevant executive members.

A recommendation on the budget will then go to full council on February 21.

Meanwhile, finance bosses in Southampton have managed to reduce its own funding shortfall.

Last night Cabinet members in the city learned the expected gap between income and outgoings in the city's finances had fallen by £1m.

Finance bosses told councillors the anticipated shortfall of £3.9m was now only £2.5m.

But it was still too early to say how this newly found government cash would affect the final council tax bill, which was set to rise by 5.2 per cent.