TAXPAYERS in Wiltshire look set to face the prospect of council tax hikes again next year after councillors have been left with a choice of cutting services or increasing the amount residents pay.

The Government announced this week how much authorities could expect from their local government finance settlement grant for the next financial year (2004/2005).

Although Wiltshire County Council's provisional grant figure has risen by 5.9 per cent to just under £230m, an increase of £12.8m, the council has been told it must pass £11.6m directly to schools.

This leaves just £1.2m extra to pay for inflation, increased demand for services and improvements to all other services.

The council said it appears to have lost out on a further £6.4m due to the Government limiting the maximum and minimum rises councils could achieve.

The County said on the uncapped criteria it could have received a total rise of £19.2m.

Wiltshire Liberal Democrat leader Trevor Carbin said council taxpayers could expect another increase in their bills next April.