CIVIC bosses in Winchester are predicting the lowest council tax increase for residents in recent years.

It will be the first time in the last three years that council tax increases have not been above inflation and should amount to an increase of about 3.3 per cent.

It is in stark contrast with the rises of 15 per cent in 2003 and of five per cent last year, and ought to mean an increase of just 7p per week for the average household.

But city bosses are already warning that future low tax rises will come at the expense of cutting services as finance chiefs struggle to make up a projected £1m deficit.

The low rise has been made possible this year by increasing charges for services provided by the council like planning advice, parking charges and even charging more for replacement wheelie bins.

At the same time, saving options could include reducing money spent on the election budget, tourism marketing, councillors' allowances and relying on fewer temporary staff.

A report to the city council's cabinet recommends a band D household pays an extra £3.42 for its council-provided services.

It will see the city council contribution of the council tax demand rise from £104.40 to £107.82.

Speaking about the changes, council leader, Councillor Sheila Campbell, said: "In order to keep the increase as low as possible we have left ourselves a shortage of revenue which will lead to cuts in future years if the anomalies in the system are not corrected next year."

The ruling Liberal Democrats will also look to freeze councillors' expenses.

Budgets for the county council, fire service and the police authority will be set in the coming weeks.

These figures need to be added to the city council rate, as will the various rates set by parish councils.