Council tax payers in Petersfield were already bracing themselves for bad news this March Ð and the expected bumper bills have just got bigger.

The average Band D bill will rocket by 14.4 per cent and now stands at £1,109.98.

The Herald reported in September 2002 that the bill could rise by as much as £130, but tax increases announced by Hampshire Police Authority this week mean the bills will rise by over £140.

Hampshire County Council were forced to raise their

precept Ð the largest slice of the bill Ð by 15 per cent after changes in the Government grant structure left them £22m out of pocket.

The county council said the GovernmentÕs policy of redistributing grant funding to more deprived urban areas in the north of England had left them in a Ôlose-loseÕ situation.

County council leader, Ken Thornber, said: ÒThis has been a heads they win, tails we lose argument. They take grant away from us to redistribute to the North and Midlands because we are unfairly deemed a rich area with high earners that can afford to pay higher council tax.

ÒBut at the same time they do not recognise our higher pay or other costs compared

to other parts of the country

and take grant away from

us on that basis as well.Ó

He said that the grant increase, one of the lowest in the country at £23m, did not even cover the extra £26m the Government will insist they put into schools.

In announcing a Ôbudget

for recoveryÕ he said: ÒOur priorities remain schools

and social services, which is why we are making it clear that we will raise through the council tax the extra money needed

to fund the GovernmentÕs spending plans for these

services.Ó

Hampshire Police Authority is also blaming the Government for its 29.5 per cent rise, bringing their share to £97.29.

Chairman of the authorityÕs financial affairs panel, Mike Attenborough-Cox, said: ÒWe have been placed in a difficult situation as a result of the Government changing the grant funding formula and have had to choose between an increase in the precept or a reduction in policing levels.Ó

But he added that the police precept is still one of the lowest in the country.

East Hampshire District CouncilÕs share will rise by 2.5 per cent, to £117.18, and leader Elizabeth Cartwright said: ÒIÕm delighted that we have been able to keep the district councilÕs financial strategy on track.Ó

EHDCÕ cabinet approved the increase last week and Mrs Cartwright said that it was the fourth year running they have been able to peg council tax increases at the level of inflation.

Petersfield Town Council had hoped to keep their

rise to 4.1 per cent but on the eve of the final budget meeting a bombshell was dropped on their plans.

Status Meeting, who rent office space from the town council, told councillors they would not be renewing their lease, leaving a £40,000 hole in the budget.

This forced the town council to rework their figures at the eleventh hour and announce an 11.9 per cent rise, putting their share up to £50.95.