HOUSEHOLDS in Waverley will face an average 4.2 per cent increase when council tax bills fall on their doormats in a few weeks' time. The figures were finalised on Tuesday by Waverley Council, which collects the tax for Surrey County Council, the police authority and the relevant town or parish council, as well as its own levy. In Farnham, the tax will range from £907, for one of the very few Band A properties, to £2,751 for the most expensive homes in Band H. The occupier of an average Band D property in Waverley will fork out an extra £55.49 a year - nearly £43 of it attributable to Surrey County Council, £8 to the police authority, £3.78 to the borough council and the remainder to their town or parish council. At the same meeting Waverley agreed to increase council house rents by 3.9 per cent, adding £3.16 to the average weekly rent of a council home. With local authority elections looming in May, there was much political wrangling as Waverley Council settled on its own below- inflation council tax increase of 2.7 per cent. The Liberal Democrat administration and Conservative opposition painted a vastly differing picture of Waverley's finances, then clashed again as the Tories unsuccessfully attempted to limit the rise in council house rents to the same 2.7 per cent. Council leader Gill Ferguson in her budget speech, referred to: "A responsible administration that has reduced bureaucracy, improved services, made a significant contribution to addressing climate change and given our council taxpayers a fair deal by keeping council tax as low as possible." She said this year's budget had once again been challenging, thanks to the "usual" poor grant settlement - just 2.7 per cent - and the fact the government had lost control of inflation. She highlighted savings the administration had made since coming to power, including £500,000 a year on the staffing budget and £600,000 a year on re-letting major contracts. And among council services that she chose to highlight were recycling, which is to see further investment; the allocation of £115,000 to Hoppa community transport; £600,000 for sponsored community organisations; a continuation of the £1.8 million investment in Farnham Sports Centre and £1 million for playground equipment. It was the use of £600,000 from balances that saw the main clash with the Conservatives. Tory group leader Richard Gates argued: "Nothing in this budget or in the financial strategy addresses the increasingly urgent problem that the cost of Waverley's services exceeds Waverley's income." He said that without dipping into balances, the borough council's tax increase would have been 10.4 per cent. Mr Gates claimed Waverley was "sleepwalking into disaster" and producing a superficial budget "related directly to the fact that an election is nigh". He predicted that in three years' time the balances would be at the very minimum level considered to be viable... "in other words, after three years without a balanced budget, Waverley is bust". His Conservative colleague, Mike Band, said the Lib Dems were "keener on soundbite than substance" and were failing to keep their capital programme under control, allowing a 40 per cent slippage, for instance on playground replacements. Lib Dem councillor Chris Mansell countered that at the end of 2004, Waverley's balances were £4.5 million; at the end of 2008, they would be £4.3 million. And Ken Reed pointed out that during their administration the Conservatives increased council tax by twice the rate of inflation - about 25 per cent in total. Turning to council rents, Miss Ferguson stressed in her budget speech that the council's hands remain tied. "The government now takes over 44 per cent of our tenants' rents away and sends it to their friends in other parts of the country, and some of it doesn't even go into housing nationally. "Waverley tenants will be losing £9.5 million next year. In other words, our tenants, who are some of the most vulnerable in our community, not only have to pay basic rate tax on their income, but also pay a 44 per cent rent stealth tax." Conservative Pat Frost proposed, however, that the 3.9 per cent increase in rents proposed should be reduced to 2.7 per cent. "If we believe it's right that the council tax goes up by 2.7 per cent, it's right that the council rents rise by a similar amount." To do otherwise, she suggested, would be punishing council tenants. Adam Taylor-Smith compared the £3.16 a week average rent increase to the £3.78 a year average increase in council tax for Waverley's services. "Unfortunately, the disproportionate burden is going to fall on those who are least able to afford an increase," he said. Mike Clark (Lib Dem) argued: "Basically what tenants want from this local authority is a good service - a service that provides a decent home... 3.9 per cent is recommended because it gives the service desired." Housing portfolio holder Ken Reed pointed out that council tenants would be benefitting from the low council-tax rise, the same as everyone else. The council has only £200,000 in its budget for external redecorations to council homes next year and if the rent increase was reduced, the sum would be cut to only £80,000, he said.