Eastleigh council tax payers are likely to face an eight per cent increase in the amount of money they pay for their borough services next year.

Council leader Keith House told a full meeting of the authority that staff preparing budget proposals for presentation later this month were working in line with Eastleigh's statutory spending assessment from the government, which had risen by eight per cent.

Last year the council set a nil council tax increase with a charge of £120.25 for a Band D property in areas of the borough which are without a town or parish council.

And Mr House said next year's increase would be about three pence per day for the average Eastleigh household, which was broadly in line with the average for other Hampshire councils.

He said: "The budget preparations are continuing well without cuts to services across the board and with improvements to some core services. It is quite a dramatic contrast with news we hear from other councils."

Labour leader Peter Luffman asked if Mr House would agree that money given by the government had "literally helped us out of a very difficult hole."

But the Liberal Democrat leader replied: "We have seen different sums of money from government over the years.

"Every year we get government initiatives where we are told that we have a statutory duty to do something and are not given the money to do it."

Tory leader Godfrey Olson pointed out that the council would receive an increase of £521,057 from the government, while a change in government policy would save the authority a further £600,000 on a loan.