COUNCIL Tax in Southampton looks set to rise by 5.2 per cent and at the same time the city faces millions of pounds worth of cuts to services.

The city council was unwilling to reveal the extent of the tax hike, but the Daily Echo has seen a leaked memo containing the inflation-busting figure. The memo reveals that although the council will receive an extra £400,000 in government cash this year, the cost of services has risen, meaning there is an overall shortfall.

The tax hike follows last year's 10.94 per cent rise, and is revealed after the government yesterday announced how much local councils are allowed to spend next year.

Local authority bosses acroass the south have dubbed the allocations, decided by Chancellor Gordon Brown's Treasury, as "scrooge-like".

In Southampton the areas likely to be hit by cuts are social services, education, transport and economic development spending.

The rise will see the council tax bill for an average band D property climb from £772.86 to £813.05.

Conservative city councillor Conor Burns called Southampton's finances a mess and warned people were paying more for less.

"Basically they need to make the same level of cuts that they were preparing for in the budget. Council tax will still rise by three times the rate of inflation, services will still be cut, people will be paying more for less," he said.

"It needs to be remembered that we have had 18 years of Labour locally and four-and-a-half years nationally and this is a Labour-made mess."

A statement from the council read: "Southampton's spending assessment has gone up by 3.65 per cent. However our grant has only increased by 3.1 per cent.

"However we have to look at other data including specific grants and benefit subsidy limitations, before we can give any indication of the required rise in council tax.

"Further information will not be received until later this week."