COUNCIL tax in Hampshire is set to rise by 3.5 per cent this year - the lowest rise in 30 years - with county bosses pledging there will be no cuts to services.

The rise, the same as the rate of inflation, would see an average Band D property's council tax increase from £840.15 to £869.40 in 2005/6.

The bill does not take into account the amount due to be charged by Hampshire's police and fire services, as well as district councils which are billed separately.

Last year, the total bills faced by council tax payers in the county averaged around £1,148 for a Band D property when police, fire and district council charges were taken into account. The county council rise alone was 4.7 per cent.

County chiefs expect bills across the county to average around £1,189 for Band D homes when the total bills drop through residents' letterboxes in April.

Hampshire's ruling Conservative Cabinet is due to meet on February 11 to discuss the proposed tax rises before they are discussed by a meeting of full council on February 23.

Leader of the County Council Councillor Ken Thornber said: "I'm delighted to announce we will be setting our lowest council tax rise for 30 years.

"Research among residents has consistently shown that people want us to budget prudently, and while they do not want to see high council tax rises, they do not wish to see cuts in essential services either. This year our budget meets these expectations."

Highlights of the Tory budget proposals this year include spending £100,000 on sending teams of officers to help rebuild Sri Lanka which was devastated by the Boxing Day tsunami disaster.

County chiefs are also planning to spend £200,000 on a graduate training programme to find the county's senior managers of the future.

Cash is being saved by reducing staffing costs - thanks to the introduction of more efficient computer systems which need fewer workers.

But there will be no compulsory redundancies and the savings will be achieved through so-called "natural wastage" and redeploying staff in other departments.

County bosses expect a 40 per cent reduction in staff numbers in some departments over the next three years as a result of the changes. But leader of the County Council's Liberal Democrat Group Councillor Adrian Collett branded the rise as "cynical" in election year.

He said: "They hit people two years ago with a 15 per cent increase and put money away in a reserve and now it looks as though they are spending it for a low council tax increase in an election year."

Leader of Hampshire County Council's Labour group Councillor Jo Kelly said she was "amused" how the Tories announced there could be higher council taxes before finally settling on the lower figure.

She said: "It doesn't really help anybody."

In Southampton, council tax bills are set to rise by 4.89 per cent from next April. The rise would mean the cost of council tax on an average Band D property would go up from £1,016.77 to £1,066.52. The rise does not take into account the costs of Hampshire's Fire and Police services.