BASINGSTOKE council is £250,000 short in its rate support grant for next year - equivalent to a five per cent rise in the borough part of the council tax.

But even if the shortfall is not corrected, borough chiefs will stick to their pledge of a nil rise in the authority's slice of the council tax.

Deputy council leader Brian Gurden told The Gazette: "The Government had promised that every local authority would get an increase in its rate support grant of at least 2.3 per cent. We had based our budget for next year on a three per cent rise in that grant.

"But when the grant figures were published this month there were 135 councils - Basingstoke included - who had an increase of less than 2.3 per cent. In fact the figure for Basingstoke was 0.3 per cent - a third of one per cent rise on last year's grant.

"This has been drawn to the Government's attention and it is hoped that they will correct this figure and give us at least a 2.3 per cent rise.

"But even if they do not, we will still be able to manage a nil rise in the Basingstoke slice of the council tax for next April.

Finance director Nick Carter explained that the difference between a grant rise of three per cent and .3 per cent was about £246,000 - which would represent a four to five per cent rise in council tax.