COUNTY council tax payers face a five per cent rise in their bills as finance chiefs proposed cutting £12.1million from their budget to keep costs down.

It came as the county council cabinet delayed making a final recommend-ation to the full council on how much to increase the tax by.

A five per cent increase would amount to a rise of £49.84 on the current band D rate of £996.85.

The Labour cabinet has introduced a £10m package of efficiency savings which include scrapping 50 jobs in human resources, and streamlining back room operations.

The cabinet had also proposed axing £2.5m of services, but has lowered this to £2.1m as it had saved money on landfill tax and because oil prices had fallen.

Coun Anne Brown, cabinet member for resources said she wanted to keep the council tax increase to under five per cent.

She added: "We could cut more to reduce council tax but, remember, it takes an awful lot money to make it substantial."

One per cent on council tax equates to about £3.7m on the council's total budget of about £630m.

To keep the rate down, Coun Brown has proposed to cut £450,000 from bus services, and increase charges for care in the community services from £10 to £11 to people who pay the full cost, which would raise an additional £275,000.

The Labour cabinet also wants to save £600,000 by helping elderly people care for themselves after a personal crisis.

A reduction in grants to arts and voluntary groups would save £135,000, closing information centres.

Coun Brown admitted that some proposals, like with-drawing transport for 63 students older than 16 who had special needs but did not have a statement of special needs, to save £40,000 would cause hardship.

But she added: "Colleges provide transport for most students.

"If colleges provide for their able students why not for their special needs students?"

She has also proposed to start charging staff to park at county hall, a move which would only take effect next year. And taking away staff permits for other car parks would also save £114,000.

David Whipp, LibDem leader on the council, said: "In real terms I think it's going hit the pocket of people in Lancashire hard, but I don't think there's that much room for manoeuvre."

The cabinet will make its final recommendations on January 25.