SWINDON residents and businesses will be asked whether they want to pay either an additional five, seven and a half or 10 per cent rise on their council tax.

People will be told how much money will be released for services such as housing, education and social services if the tax bill was raised.

The borough's cabinet was last night told that the tax rise would be around three per cent next year if the local authority continued to budget at the current level.

But the national average council tax increase and Swindon Council's planned rise is five per cent, which would increase spending capacity by about £800,000.

If the council decided to opt for a seven and a half per cent increase, an extra £1 million would be made available for services, and a 10 per cent rise would mean £2 million more for the council.

Council officer Ian Thompson told last night's meeting: "It is now open to the council to consider a further increase in council tax because capping by the Government is no longer applied. Every one per cent increase generates a further £400,000 of spending capacity."

Council leader Sue Bates (Lab, Gorse Hill and Pinehurst) proposed that residents and the business community be consulted in February in the form of a questionnaire. The results would then be avaiable before the council's budget meeting.

She also proposed an urgent meeting with Government ministers to get a better deal for Swindon. Last week it was announced the borough's settlement from the Government would only be 3.4 per cent more than last year, compared with a national average 4.9 per cent.

Her recommendations were approved by all members of the cabinet except for Mike Bawden, leader of the Conservatives, who abstained from the vote. The ratification committee is expected to give final approval in a fortnight's time.

The meeting heard that counties in South East England, including Oxfordshire, had received the best settlements.

Coun Jim D'Avila (Lab, Moredon) referred to the recent lost battle by Terry King and other campaigners to save the Front Garden from being developed for housing.

"Authorities just a couple of miles away from here are getting better deals than us. Perhaps Terry King was right. We should have expanded to the east and not the south at all," he quipped.