A COUNCIL tax rise of five per cent is on the cards, but residents may suffer cuts in services.

Although finance experts have described it as a "standstill" budget, there will be a shortfall of £2.1m unless a higher increase is agreed.

Now it is up to Bury taxpayers to decide how council chiefs should balance the budget.

The news was unveiled at the annual budget roadshow presentation for 2004/2005 at Radcliffe Area Board on Monday.

Andrew Baldwin, head of financial management at Bury Council, said: "We will welcome your views on where you think we should make savings or how much the council tax should be increased."

Mr Baldwin said that in terms of this year's settlement from the Government, it was "good news" for Bury. Local government spending was on average up by six per cent across the country but, after years of being one of the worst funded authorities, Bury had received a 7.3 per cent increase.

He said central Government had assumed the council tax would increase by no more than five per cent this year, including Police and Fire precepts (up by 7.5 per cent), but to match the government grant issued, Bury would have to increase council tax by 7.3 per cent.

If the council adopted its initial strategy of increasing council tax by five per cent, there would still be a shortfall of £2.1 million which would have to be addressed by either making savings in services or by putting up the council tax by more than five per cent.

Mr Baldwin said each one per cent increase would equal £630,000 extra to spend.

He invited residents to have their say on what should be done by contacting him at the town hall on 0161 253 5002 or emailing the dedicated budget address at budget2004@bury.gov.uk

Decisions about the tax will be made at an executive committee on February 18 and the council on February 25.

If the council tax was to rise by five per cent the bill for a Band D property would increase by £54.18 a year, from £1083.59 to £1137.77. That's £1.04 more a week.