PETERSFIELD Town Council handed council tax payers in Petersfield a below-inflation rise this week, but the townÕs mayor raised fears the budget could be too tight.

George Watkinson told the meeting on Monday night the financial increase in the councilÕs budget was 2.8 per cent.

But he added that the number of homes in the town had increased, and so the increase of the town councilÕs share of the bill to an average household would be just 0.4 per cent.

ÒI appreciate that and I am sure ratepayers appreciate that,Ó he said.

But he went on to express concerns that the budget was too tight, and the council could face difficulties in 2004/05.

ÒIt is an exceedingly tight budget, particularly in things you cannot really predict, such as legal expenses, he said.

ÒI am concerned we have cut the budget down so much that if we have a spate of problems, such as travellers, we are going to be in trouble.Ó

And he added he was still concerned about the amount of money in the budget for smaller annual grants.

But chairman of the councilÕs finance and general purposes committee, Bob Ayer, reassured Mr Watkinson.

He said that the working balance, a contingency fund, had been increased to £48,000, and the overall grants budget had been increased to £54,000.