Council tax will not rise by more than 10.9 per cent next year, Swindon council leader Mike Bawden said this week.

Tax hikes of up to 13 per cent had been feared, but Coun Bawden said that the rise could be as little as five per cent, and would definitely not be more than 10.9 per cent.

He said: "We are currently running a consultation exercise, where we ask people to comment on plans for a five per cent rise, a 7.5 per cent rise or a ten per cent rise, and we are getting a mixed response.

"As a Swindon council tax payer I personally would prefer as small a rise as possible, but you have to balance that with the level of service that must be provided for the townspeople."

Pensioners in the town have been leading an impassioned campaign against any tax hike, saying that they would not be able to live on current pensions if they have to pay more council tax.

Campaign leader Frank Avenell, 82, said: "My feeling is to a large extent the large increases in council tax are down to the wasteful expenditure of Swindon Council.

"A five per cent rise would be acceptable, but another 12 or 15 per cent, like last year, I would point blank refuse to pay and face the consequences."

Mr Bawden said that he had this week received a letter from local government minister Nick Raynsford saying he would like to see the hike for Swindon in the 'low single digits'.

The Conservative group has unveiled plans for next year's budget that include a massive £3 million saving, but these have come under fire because they include cuts to charities and essential community facilities like subsidised bus fares to the Great Western Hospital.

Coun Bawden said: "The pensioners want the lowest increase in council tax possible, but this will mean we have to make cuts in services."

The full council will debate the budget in a meeting on Thursday, February 4.

North Wiltshire District Council may still be maintaining it will get away with a rise in line with inflation this year, but that hasn't stopped it being slammed as inefficient for allowing a £1.5 million overspend.

In November, North Wiltshire District Council said it expected an overspend of more than £850,000, but that figure has now almost doubled.

Coun Ruth Coleman said she

expected the district council's share of council tax would go up in line with

inflation, but she was confident the council could pay for the deficit with cash from its reserves.

She added that the original overspend was a result of reorganising the council's management structure and the resulting redundancies of senior staff.

But despite her assurances, many councillors said they were appalled when the new overspend was announced.

Coun Toby Sturgis said: "There might not be a tax increase this year, but by raiding the reserves they are unsettling the council's financial stability."

Branding the new figure 'appallingly bad management' of the council's resources, he also demanded a report into the 2004/05 budget-making process, to reassure the committee that procedural guidelines for planning this year's budget were followed.