SOUTHAMPTON'S council tax payers look set to be charged up to five per cent more for services in the city next year.

An average band D household can expect its council tax bills to rise by just under £35 in 2001 if the predicted increase goes ahead.

Financial experts at the city council have forecast that to retain services at current levels and to cover inflationary pressures, the council must collect an extra £7 million.

These are initial forecasts and more will be known once the Government informs the council how much money it can expect in grants.

Executive member for corporate management, Councillor Peter Jenks said managers were already looking at areas that could be cut to make savings to ensure the continuation of priority services.

He said: "The difficulty is that these are very early days and we are still only guessing what the Government is going to give us."

Elsewhere, the neighbouring district councils of Fareham, Gosport, Eastleigh, New Forest and the Isle of Wight said it was too early to predict their council tax charges.

Hampshire county council, meanwhile, is predicting a six per cent rise next year.