LOCAL authorities, including police and fire services, in Lancashire were today warned they faced having their council tax demands capped after their annual Government grants were announced.

Local Government minister Nick Raynsford said he expected the limit on council tax increases to be lowered from last year's six per cent.

For Lancashire Police, a rise of 4.3per cent has been confirmed by the Government, taking its annual support up £7.9million. But it falls short of the six per cent bosses say they need to avoid cuts.

Lancashire County Council received a 5.3per cent increase, an extra £39million, up to £779.526million. That is what the authority expected, and now faces £19million of cuts to peg its tax increase to 3.5per cent.

Lancashire Fire and Rescue fared the worst out of any public body in the North West, receiving just 2.6per cent extra.

Local councils in East Lancashire had mixed fortunes. Burnley will get £9.9million, up 5.6per cent; Hyndburn will receive£7.7million, up 4.4per cent; Pendle gets another 6.7per cent, to £8.6million; Ribble Valley gets 4.3per cent extra, up to £2.9million, while Rossendale gets 2.8per cent extra to £7.8million.

Blackburn with Darwen Council, which combines the functions of county and district council, receives an extra 6.1per cent, taking its support to £145.2million.