Gosport council leaders fear that civic taxes may have to rise by £30 for the average home - or services will have to be cut.

Colleagues in Fareham are facing the same stark choice after Whitehall's announcement of local government spending figures for the next financial year.

Gosport councillors are furious at a rise of only one per cent in the amount of money given by central government to Gosport.

Leader Peter Edgar described the grant as derisory, pathetic and unacceptable.

He said: "I am absolutely horrified. The government has kicked us in the teeth. It is a disastrous settlement as far as Gosport is concerned."

The rise - from £6.073m to £6.135m - is among the lowest in the country and comes as a body blow to Gosport's spending plans.

The £62,000 boost does not even cover next year's increased wage bill of £304,000.

And deputy leader Mark Hook added: "People have either got to brace themselves for Gosport's element of the council tax going up by something like £30 or accept the fact that services must be cut."

The £30 increase would come on the average Band D home, which is currently charged £140 a year by Gosport Council.

Fareham leader Sean Woodward is also unhappy with the settlement which he predicts could mean the borough's part of the council tax bill shooting up by 15 per cent.

The council must raise £4.716m in council tax to make up the balance of what the government says the council should spend - £9.182m - next year to maintain services.

Cllr Woodward said: "The government should take account of true need, the rise in insurance premiums and drop in interest rates. We are facing some difficult choices."

Liberal Democrat group leader Councillor Roger Price has accused Cllr Woodward of "scaremongering" by predicting big council tax increases.

He expects Fareham's share of the council tax to increase by just five per cent.

"The Conservatives are hyping up the tax increase so they can say what good boys they've been when they set it."

Labour councillor Mick Prior said: "I would be surprised if such a high rise was necessary because of the reserves held by the council.''