HOUSEHOLDERS face a hike of around eight per cent in council tax charges in the wake of last week's Budget.

Exactly how much it will go up is not certain, but even the most conservative estimates put the lowest-banded properties in both Burnley and Pendle at well over £500.

Council leaders say the rise is because of Chancellor Ken Clarke's decision to cut government payments.

The final figure will include cash bound for the local council (up £10 - £15), the county (up £35 - £36) and, for the first time, an extra amount for the police service.

Finance staff calculate that Burnley people can expect to pay at least £42 a year more. The borough's 25,000 band-A households will see bills go up from £498 to £540, and the other 13,500 will pay proportionately more.

In Pendle, band-A householders could see a rise of around £45, with village and town council precepts on top.

Town hall staff and council leaders discovered the implications when they read the small print of the Budget paperwork published the day after the Chancellor's speech.

Burnley council leader Kath Reade says residents will be hit by an 8 per cent rise and said people would have to pay extra to keep services at the level they are now.

She warned: "We're predicting this rise even with a budget freeze, the fifth annual freeze for this council."

Pendle Council organises its finance a year in advance and has already made cuts of £800,000 in preparation for its fifth stand-still budget in a row.

Estimates chairman Councillor Tony Greaves said: "All this money will not mean a penny extra for council services. It is simply to make up for a lesser Government grant."

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