COUNCIL tax bills across Hampshire could rise by as much as 4.9 per cent - twice the rate of inflation - from next April.

It would mean the average county household paying an average of £44 extra for services such as roads, education, social services and recycling.

County bosses are set to consult residents on alternative options of a 2.5 per cent or 4.9 per cent increase. Plans to consult on a 7.5 per cent increase have been dropped.

The council says it would only be able to keep council tax rises to 2.5 per cent by £10.7m of cuts in services such as social care, libraries and roads maintenance.

However, if it was allowed to increase council tax by 7.5 per cent, more money could be spent on adult social care without slashing other services. But campaigners have criticised the £40m of public money the council is planning to spend on revamping its headquarters at Ashburton Court in Winchester plus its spiralling wage and pensions bill.

The number of county council employees increased from 37,236 in 2004/5 to 38,849 in 2005/06 - a rise of 1,613.

Christine Melsom, chairman of anti-council tax group IsItFair, said: "There are lots of things that could be cut back besides services."

Meanwhile county council leader Ken Thornber has urged ministers to stop using their capping powers to hold down council tax increases. The government is expected to limit council tax rises to five per cent for the second year running to protect people from bigger bills.

Mr Thornber is to meet Ruth Kelly, minister for local government, on Monday. He said: "I shall be asking her to lift the capping regime because if she does not do that the alternative is savings or cuts - call them what you will."

However, Mrs Melsom added: "The cap is there to protect council tax payers and we would not want to see it abolished. We think it think it should be lowered."