Council tax bills in Hampshire will rise faster than inflation again this year.

County council members approved a 4.7% increase, having been barracked outside The Castle on Wednesday by around 50 protesters demanding lower bills.

Leader, Ken Thornber, calling it "a respite budget", said it was the smallest increase for 20 years, after a 15% hike in 2003.

Liberal Democrat and Labour opposition groups proposed smaller increases, voting against Mr Thornber's budget, but backed many of his proposals.

The meeting began with two speeches by activists from pressure group, IsItFair, who had several protesters in the public gallery.

Group organiser, Christine Melsom, told members: "Perhaps you think you should have received a pat on the back for getting council tax down, but since when was up 'down'?"

Bill Welton added: "People have had enough. Council tax has to be scrapped and until it is, there has to be double-digit reductions every year."

Rejecting the view that it should be withdrawn, Mr Thornber said: "It is the increase which is unsustainable, not the tax itself."

Lib Dem group leader, Adrian Collett, sympathising with the protesters, said: "The council tax is a rotten tax which has to go."

Mr Thornber said there would be no cuts in services, and that the Government had boosted Hampshire's finances by £7.5m.

"I am pleased to say we have a respite budget offering council taxpayers an olive branch, but with the storm warning that further grant loss has simply been deferred for a year."

He predicted that Hampshire's council tax would rise by 7-8% next year and in 2006. Council figures showed this year's rise of 4.7% would mean the county asking residents in a Band D property for £840.15.

"When the precepts from the police authority, district councils and town and parish councils are taken into account, council tax is set to increase by around 6% in total for Hampshire," added Mr Thornber.

He announced a £22.4m boost for social services as part of the authority's new £1.052bn budget.

Also on the Tories' shopping list is a £1m scheme to provide 40 accredited community support officers to crack down on anti-social behaviour. The Lib Dems tried to undercut Mr Thornber, suggesting a rise of 3.7%. Mr Collett said this was possible by reducing agency staff and spending reserve cash. He also proposed a £1m boost for the youth service.

Lib Dem, Brian Dash, said they had misgivings about the budget, but backed moves like recruiting 40 youngsters for modern apprenticeships.

Labour group leader, Bill Wheeler, had suggested an even smaller tax rise of 2.8%, which he said was in line with pension increases.

The Lib Dem and Labour amendments were rejected after Tory members, with a majority on the council, voted against. The Tories then used their advantage to get Mr Thornber's proposed 4.7% tax hike approved.