MEMBERS of Swindon's cabinet last night discussed the difficult choices facing the council as it prepared to set its budget.

The meeting was told that council tax payers face a four per cent rise just to maintain current service standards.

And that figure will rise to about 9.5 per cent if much needed improvements in education and social services are to be paid for.

The cabinet agreed to call on council officers to produce proposals for services in time for a special cabinet meeting on Wednesday.

Officers will be asked to produce two sets of proposals one based on the four per cent rise in council tax needed to maintain services and the other based on the 9.5 per cent figure.

Coun Mike Bawden (Con, Old Town and Lawn) said: "It gives us no satisfaction to indicate that the council tax may have to increase by 9.5 per cent."

He said the Government had "totally underfunded" education in Swindon and he backed the Evening Advertiser campaign for fairer funding for schools in the town.

The cabinet studied the Government's cash allocation for the borough in the 2002/03 financial year.

Shortfalls are made up from council tax and other sources of income.