l Ian Dobie, Swindon's Tory group deputy leader is disappointed at the announcementSwindon Council will get £124 million from the Government to spend on services next year. But civic leaders will tell Deputy PM John Prescott that it's not enough

TAXPAYERS are bracing themselves for a massive hike in council tax or cuts to services after the Government's financial settlement to local authorities was announced.

The gloomy outlook was roundly predicted after Swindon Council was given £124.9 million to spend on services for the next 12 months a meagre cash settlement, according to civic leaders making it one of the lowest funded authorities of its kind in the country.

This annual grant is a 4.2 per cent increase on last year's £119 million settlement, but that will not cheer homeowners who earlier this year had to stomach a 15.5 per cent hike in their rates the highest in the south west for the second year running.

Education and social services are the two biggest spending areas and will swallow up the majority of this money, but talk has now turned to speculation about exactly how much council tax will rise when the budget is finally settled in March and which services will have to be slashed.

Swindon Council deputy leader, Ian Dobie (Con, Haydon Wick), said: "It's safe to say I'm disappointed at the settlement because this doesn't really meet Swindon's needs.

"Some hard decisions will have to be made, but I have confidence this administration will do its best to maintain the promise of a low council tax rise. We will consult with residents on the options open to us once we have done the number crunching."

The money will be used to finance services across the borough for the next financial year and forms 70 per cent of the authority's £180 million budget.

This year, for the first time, the average bill for a Band D property in Swindon exceeded £1,000.

Labour group leader, Kevin Small (Western), said: "The first thing we must do is recognise this is an above-inflation increase and that has to be welcomed. Even before this announcement we've seen cuts in elderly services with the closure of two homes the Tories are determined to have a low council tax regardless of the cuts it may mean to services."

Next year, for the first time, the fire service will precept in the same way the police has always done. In the settlement Wiltshire police received just over £60 million a 3.3 per cent increase on last year's £58 million, while Wiltshire Fire Brigade received £8.7 million a 3.5 per cent increase on last year's £8.4 million. Wiltshire County Council received £229 million a 5.9 per cent increase on last year and North Wilts District Council got £3 million.

Swindon's Liberal Democrat leader, Mike Evemy (Eastcott), said: "This settlement will mean another double digit rise or cuts to services."

When setting the budget earlier this year the council faced a choice between large council tax increases and wide-ranging cuts to services, including the arts. It opted for the former.

North Swindon MP, Michael Wills, said: "I'm glad the Government has given the council more money and an above inflation increase. Now the council has to make this work for the people of Swindon."

Milton Keynes was the highest funded receiving £164 million, while Bournemouth Council was another of the lowest funded receiving £102 million.

Local government minister, Nick Raynsford, said there was "no reason" for council tax rates to soar into double figures, if councils were being well run. "We're clear the current trend in council tax rises is not sustainable," he said. "People expect their local authorities to set reasonable council tax levels.

"They and we are looking to authorities to deliver high quality services in a cost effective way large council tax increases are simply not acceptable."

Councillors will tonight discuss the ramifications of yesterday's cash grant from the Government to Swindon Council. Deputy Prime Minister John Prescott decided to give the authority £124 million and the full council meeting is likely to be dominated by this topic. The meeting, which is open to the public, starts at 7pm in the Civic Offices in Euclid Street. Call 01793 463000 for details.

gsheldrick@newswilts.co.uk