SURREY County Council is calling on the government to "get real" about the funding of local services, after doing its figures and finding a 12 per cent increase in council tax could be on the cards next year. The government claims that council tax should rise by no more than five per cent and the county council insists that it has no intention of an increase beyond a low single figure. But, launching a new campaign called "Get Real" this week, council leader Nick Skellet said that if the council was to do all the government said it should, it would have to raise council tax by 12 per cent or more. He called for ministers to face up to the true costs borne by local councils and stop passing the buck to residents to make up the shortfall. The county council says it is anticipating a shortfall in government funding equivalent to around £50 million in the financial year. This has prompted it to start a major review of how it provides public services to see if it is possible to take that much money out of the budget without damaging its performance. The county council is responsible for a range of services including eduction, social services, libraries and roads. Each year the government gives it a grant, paying for the bulk of the costs, but money raised through council tax also helps to pay towards the services. The county council claims that that with the government not paying its fair share, the only options are to cut services, increase council tax to make up the shortfall or a combination of the two. The county council gets the largest slice of the annual council tax bill so any increase in its precept will see the overall bill rise significantly. Waverley Borough Council, Surrey Police and Surrey Fire and Rescue also receive a share of the council tax. In-depth consultation with residents has started to gain their views on council tax levels and where they want Surrey's spending priorities to be. The services which the county currently spends the most on are eduction and social services. The aim is to show how spending choices have a direct impact on council tax levels, and to get more information as to how much Surrey people want spent and on what. Mr Skellett said: "In many areas in the north, council tax payers only have to pay £1 in council tax for every £4 spent by their council, the government pays the other £3. "In Surrey, taxpayers pay every £1 for every £2 spent by their council. "This is unacceptable to our residents and it's high time the government got real about the true cost of its grant distribution for Surrey council tax payers. "With the launch of the council's £50 million business review, we are doing everything in our power to cope with the increased demands on our services - particularly for the elderly and vulnerable children, but we are also calling on residents to support our lobbying - and any comments I receive will be passed on to David Miliband, the local government minister. "The government has postponed the revaluation of properties because of fears about the impact on council tax, and asked Sir Michael Lyons to undertake a review of local government functions and finance. "Yet despite this, ministers are also proposing to make changes to the grant system next year, which will also have a huge impact on council tax, though this is disguised because the consultation document is flawed and misleading. "If the proposed changes to the funding system for next year are introduced, Surrey County Council will have to consider carefully what recourse it might have." The government will announce funding levels for UK councils at the beginning of December. Council tax levels will be formally announced in February next year.