COUNCIL TAX payers in Alton are being warned to expect massive 18 to 20 per cent rises following devastating news on government funding to Hampshire County Council this week.

It could mean an increase of more than £170 on the average tax bill in Alton next April, just to maintain services.

Last week Hampshire county councillors received the news they had been dreading - that their funding from central government was going up by just 3.7 per cent. This means there will be a £45m shortfall in the county councilÕs budget.

And council leader Ken Thornber has warned taxpayers: ÒWithout a hefty council tax rise, the council would be looking at dramatic cuts to services to make up the grant loss.Ó

Hampshire police have already painted a black picture for tax payers saying they will either have to reduce policing or put up their share of the council tax by at least 20 per cent.

This warning came in the wake of news that Hampshire police were set to get a three per cent increase in funding. They said they needed seven per cent to avoid having to make unwelcome cuts in policing.

There was better news for East Hampshire District Council on Wednesday when the government announced that they would receive a 3.3 per cent increase in funding.

EHDC leader Elizabeth Cartwright told The Herald that although this was less than the 5.9 per cent national average it would mean the council would be able to see through its promise of a balanced budget and a tax rise in line with inflation at 2.5 per cent.

The only unknown factor left for Alton council tax payers is how big a slice of the cake Alton town councillors will want. At a recent policy and resources meeting, council leader Dave Crocker made clear that following the 13.1 per cent rise in precept last year, local residents would be facing an even bigger rise this year, if services were to be maintained.

But, he stressed, in real terms Alton tax payers were still getting a good deal. Before last year the town council had not put its precept up for ten years and, in fact, over the last three years had reduced it in order to use up council reserves.

Even now, with tax hikes on the way, local people would be paying less than if the town portion of the council tax had been increased over recent years in line with inflation.

According to town clerk Steve Parkinson, even a 20 per cent rise would add just £7 onto the town portion of the average household council tax bill.

Town councillors are due to make their final decision on their budget in public at a full meeting of the council on January 30.

Although their share of the tax cake is tiny - last year average taxpayers paid £33.19 to the town compared with £734.67 to the county council , councillors are still very aware that the overall impact of next yearÕs council tax bills could come as a real blow.

The biggest shock will come from Hampshire County Council, and county leader Mr Thornber has been urging colleagues in other South East counties also affected by the governmentÕs overhaul of council funding to join him in demanding a meeting with Deputy Prime Minister, John Prescott, to argue against the settlement.

He said the 3.7 per cent rise fell far short of the cash needed just to maintain current services, let alone the added costs of inflation, committed pressure such as landfill tax and other demands.

ÒMinisters accused us of scaremongering when we warned that Hampshire faced massive grant losses,Ó said Mr Thornber, Òyet what we see now is ministers scaring the people of Hampshire because of their notion that our taxpayers should pay more towards their services than people in the North.Ó

Simon Hayes, chairman of Hampshire Police Authority said: ÒIt is a sad state of affairs that we are losing funding because Hampshire and the Isle of Wight are safer places to live than many other areas of the country. We will now have to take the difficult decision of either reducing policing or increasing the police precept in the council tax by at least 20 per cent.Ó

Mrs Cartwright leader of EHDC told The Herald: ÒI am quite relieved with our grant. The 3.3 per cent is slightly more than we budgeted for, but it is still well below the national average of 5.9 per cent. We are able to keep our share of the tax bill to a 2.5 per cent increase.Ó

She said this was despite facing 3.5 per cent pay rises, one per cent national insurance and one per cent superannuation costs.

l PEOPLE are getting good value for money from Hampshire County Council according to a study by the National Audit Commission.

The watchdog, which examines whether public bodies deliver value for money, gave Hampshire the top rating of ÒexcellentÓ in its Comprehensive Performance Assessment.

Most councils were also ranked excellent or good with few judged fair, weak or poor.

And Hampshire was judged to be well placed to improve its services, with the council getting the second-top rating of three.