TENS of thousands of council taxpayers in Hampshire could be facing a whopping £110 rise in their council tax bills next year.

That's the grim message from county finance bosses as the authority struggles to plug an estimated £45m gap in the budget.

The figures were outlined at a meeting of the authority's cabinet this week which revealed council tax would have to rise by 15 per cent if the county wanted to balance its books and protect key services.

If the rise came in, council tax on an average Band D property would rise from £734.67 by £110.20 to £844.87.

County council leader Councillor Ken Thornber, said: "Never before have I seen such a grim outlook for next year's budget in 25 years of serving on this county council.

"Our almost worst predictions have been realised. It is quite clear, and ministers have said this, that there has been a move of resources from the south and east of this country to the West Midlands, East Midlands and the North."

Cllr Thornber added that the authority still did not know if more money would be moved from the south to the north in the future.

He said: "Particularly vulnerable are those on fixed incomes and low fixed incomes."

Details of the government's budget settlement were given to members by the county's treasurer, Jon Pittam.

He told members it was still too early to make final decisions about spending for next year.

He said: "At the moment, to get to a position where you have some flexibility for growth items and some room for manoeuvre, you are looking at a council tax rise of 15 per cent."

Members of the county council's Cabinet decided to defer making detailed decisions on the budget until the New Year.

Speaking after the meeting, Cllr Thornber added: "We already had a highly complicated funding formula that applied to all local government and we were promised a simpler, more transparent system to replace it. In fact, what we seem to be offered is a more complicated system that isn't understandable, transparent or fair.

"That is why the Cabinet decided to hold a special meeting on January 6, when everyone has had an opportunity to study the information in greater detail over the Christmas and New Year break and to agree what representations we would make to the government.

"This is the worst budget settlement I have known in all my years in local government and it is clear that nearly all our worst predictions highlighted in the "Hands off Hampshire" campaign have been realised."

Southampton residents are facing a similar council tax rise of 15.2 per cent. The huge increase would mean council tax in an average Band D property would crash through the £1,000 barrier for the first time to £1,046 from the current £908.