Fareham civic chiefs are facing a difficult choice over balancing the books.

People will blame them whether they raise council tax bills or cut services.

Council leader Sean Woodward is pinning his hopes on the government to bail the council out of a looming financial crisis.

If ministers don't loosen the purse-strings, he will be forced to choose between slashing costly council services or raising Fareham's part of the council tax by up to 15 per cent.

The borough faces a cash shortfall of around £750,000 because of falling interest rates on its investments following the terrorist attacks in the US on September 11.

On Friday Cllr Woodward will lobby local government minister and Southampton Test MP Alan Whitehead in an effort to pressure the government into stumping up the cash.

He said: "At the moment our revenue support grant from the government is only £300,000 a year - and we spend around £13m a year on local services. This is a situation that needs a significant and permanent cash increase.

"The only other alternative is a permanent increase in the council tax, and that is not an attractive solution. We could reduce services, which we do not wish to do."

Any budget cuts would hit services that the council is not obliged to provide. Sports facilities would be one area that could feel the pinch of any council belt-tightening.

Cllr Woodward said: "This is an incredible situation that is outside our control.

"I am going to ask for support from central government to be raised to around £1m a year."

Unusually, the main opposition group in Fareham's council chamber backs Cllr Woodward.

Liberal Democrat group leader Cllr Roger Price admitted the gloomy situation was entirely the result of forces outside the council's control.

He said: "We can expect at least a ten per cent rise unless one tries to reduce services in the borough.

"It is a sorry situation."