COUNCIL tax bills in Petersfield could rise by a staggering 13.5 per cent if the Government goes ahead with its planned overhaul of local council funding.

It could mean an increase of more than £130 on the average council tax bill dropping through letter boxes in the town next March.

Hampshire Council Council, which takes by far the largest slice of the council tax cake, has warned that it could be forced to raise its share of the tax by at least 15 per cent next year to pay for vital services including social services, schools and roads.

And this week county council leader Ken Thornber said the governmentÕs plans were the grimmest news he could remember in 25 years of council service.

He vowed to fight them, and announced that the county council was seeking an early meeting with members of Parliament to put their case.

Hampshire is joining forces with county councils across the South-East to argue against the devastating impact on services that the new funding formula could have.

ÒThe government cannot be serious about its funding reforms,Ó he said this week.

ÒAdded to years of unsustainable council tax increases running at two to three times the level of inflation - to fulfil the governmentÕs priorities and the needs of our residents - a council tax rise of between 20 to 30 per cent over the next few years could mean the government leaving the people of Hampshire well and truly stuffed.Ó

The news is another major blow to East Hampshire taxpayers, who were told last week that Hampshire Police Authority could be forced to raise its share of the precept by a shocking 22 per cent if the government plans went ahead.

This follows a rise in the police precept of 27.3 per cent last year.

East Hampshire District Council was aiming for a 2.5 per cent rise in its share of the bill for the third year running, in line with inflation.

But this week council leader Elizabeth Cartwright told The Herald she was Òextremely worriedÓ after hearing the problems facing the county council.

She warned that if the government did not keep its grant promises to the district council, councillors could not keep the tax down.

ÒIt entirely depends on whether the government do the decent thing and give us the level of grant in line with inflation that we have been led to expect,Ó Mrs Cartwright said.

ÒWe are still aiming to achieve 2.5 per cent, but if the government donÕt give us the expected grant we canÕt achieve it.Ó

ÒI am extremely worried about the level of grant we will get from the government because the county has been given indications and these are extremely bad , but we havenÕt been given these sort of hints yet.Ó

Under the governmentÕs proposed changes, money it gives to councils in the South East would be redistributed into urban and metropolitan areas in the north and the Midlands to support areas which the government believes have higher levels of deprivation.

Council tax bills which arrive on the doorstep every March are made up by adding together the precepts from the county council (around 75 per cent of the total tax bill), East Hampshire District Council, the Police Authority and the town or parish where the taxpayer lives.

This year the average Band D council tax bill currently being paid in Petersfield is made up as follows:

Hampshire County Council £734.67 (7.9 per cent rise on 2001 bill)

East Hampshire District Council £114.32 (2.5 per cent rise on 2001 bill)

Hampshire Police £75.15 (27.3 per cent rise on 2001 bill)

Petersfield Town Council £45.53 (3 per cent rise on 2001 bill)