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Last updated: Tuesday 2nd January 2001, 1300 GMT
Council Tax expected to raise the roof
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A council tax form.

Council Tax in Southampton looks set to go up by around 5% this year, that means a bill for a typical Band D property will rise an extra Ł37.55.

Band D homeowners may have to find another £40

This year the council's purse strings will be even more strained, to maintain existing services and cover inflation the City Council needs to rake in an extra Ł7m.

The cash-strapped authority will have to raise council tax, cut other services, or both.

The greatest cause of this pressure is the demand on Social Services, which is outside the control of the council.

The financial pace is higher in this area because more children need care, and people are also living longer. Equal Pay Legislation could also up the council's pay bill.

Council Tax table

With these initial forecasts the council is looking at areas which could be cut in order to make savings. They will have a better picture once the Government informs the council how much money it can expect in grants.

Final budget decisions will be made next month

What is council tax?

The money to pay for local schools, fire, police and ambulance services and to fund council projects comes from council tax.
This is essentially a tax on property. Each local council sets its council tax rate in bands according to the value of the taxpayer's house.
In the 1980s the government of Margaret Thatcher tried to change this to a system whereby everyone paid a set amount.
This became known as the 'poll tax' and sparked mass disturbances in protest. The 'poll tax' was later scrapped in favour of the council tax there is now.

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