COUNCIL tax payers in Petersfield are likely to face another shocker when bills go out early next year.

Early signs are that the average bills dropping onto doormats in the town next March will increase by at least £65, making a total of around £1,175.

Hampshire County Council, which claims by far the largest slice of the tax bill, has taken the unprecedented step of undertaking early and wide-ranging consultations with residents and businesses to examine options.

The unusual move comes a year after the county council set an inflation-busting council tax increase of 15 per cent this year.

Next year councillors believe they will be forced to raise their slice of the tax cake by another six to seven per cent to cope with government grant cuts and to provide services.

East Hampshire District Council has warned council tax payers that it faces a massive £750,000 shortfall in funding next year unless it takes action now to find extra money.

Head of financial services Bill Price has reported that the shortfall could mean bigger rises in East HampshireÕs share of the tax bill next year.

Earlier this summer he warned that it was becoming Òincreasingly difficultÓ to keep to the councilÕs political objective of maintaining services at their present level and keep the council tax increase to within 2.5 per cent.

Councillors are also carrying out a review of their car parking charges throughout the district in a bid to raise funds and rethinking its concessionary fares scheme.

They are also re-examining their garden waste collection system and reviewing senior management staffing.

At Petersfield Town Council budget discussions are about to begin with a view to setting the town council precept early next year.

Councillors will be starting their discussions on the back foot after a last-minute bombshell this year forced them to rework their figures.

Status Meetings, which rented office space from the town council, did not renew its lease, leaving a £40,000 hole in the budget. Town councillors estimated that they could fill the office for half the year and stumped up the remaining £20,000 from a last-minute council tax rise.

But so far only the smallest of the three offices have been let, leaving councillors with another financial headache to face next year.

Also watching the councilÕs budget discussions closely will be the four town organisations which rely most heavily on its support.

The Petersfield CAB has already made a special presentation to the council outlining its desperate need for funding.

Petersfield in Bloom, which got half what it asked the town council for this year, says it may have to cut back on planting again next year if it does not get sufficient support.

The new business group APE - Associates of PetersfieldÕs Enterprises - will be looking for funding from the town council for a Christmas lights display in the town.

Members of the group are anxious to produce a good festive display after the fiasco of the townÕs Christmas lights last year, which were roundly criticised. Town mayor George Watkinson has already said the lights should be top of APEÕs priority list.

The ever-popular open air swimming pool will also be looking for funding to carry out repairs and implement new schemes at the pool.

Chairman of the councilÕs finance and general purposes committee Bob Ayer said he had asked all town council committees to prioritise their wish lists at the start of the discussions.

He told The Herald: ÒMy concern is that the current net expenditure is significantly higher than the precept and this will need to be taken into consideration during the budget discussions, although at present this is cushioned by healthy cash balances.Ó

Council tax payers are also waiting to see how big a share of the tax bill Hampshire Police Authority will demand. This year the authority increased its share by a huge 29.5 per cent.

And for the first time next year Hampshire Fire Service will be putting in its own precept. In previous years Hampshire County Council has precepted for the fire authority.