BUDGET difficulties faced by Kennet District Council may affect Ludgershall and Tidworth residents in the next financial year.
The council estimates they will receive £153,000 in additional money from the Government with the rate of inflation adding over £500,000 to costs.
The executive committee is setting up a sub-committee to find ways to balance the budget according to the medium-term financial plan.
The authority expects to make internal savings to meet Government targets such as spending £200,000 on recycling this year.
Leader of the council, Chris Humphries, said: "I can see us faced with the worst of both worlds - the need to put up council tax and the need to make substantial savings.
"This is not good news for the local tax payer or the public we serve, or indeed council staff."
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