COUNTY councillors have approved a 7.7 per cent rise in council tax after insisting it was not possible to save money and maintain services.

But the ruling Labour group was criticised for the way it put the budget together as both opposition parties put forward proposals for a lower increase.

The decision by Lancashire County Council means that its share of council tax for a Band D property will rise to £858.

Borough councils throughout the area have yet to set their share of the council tax, while Blackburn with Darwen, as a unitary authority, has yet to set any of its tax.

Last year's rise was three per cent and the new figure is one of the largest rises in the county since council tax was introduced.

At a full meeting yesterday, Coun Tony Martin, in charge of finance, blamed the high rise on a poor settlement figure from central Government, which he has said was the lowest for any shire county.

The way each settlement is determined is set to be changed, he said, which could lead to the county getting a better deal in the future.

In January, cabinet members were presented with a plan by county finance bosses but which would involve massive cuts from various departments. That would have led to a 4.47 per cent rise -- or a rise to £830 for Band D properties.

Cabinet members said it was not possible to save money and maintain services, and coupled with extra demands from Government to develop new e-government policies and a higher than expect teachers' pay rise, the final rise was put at 7.7per cent.

Conservative finance spokesman Michael Welsh said his party's proposals for a 4.72 per cent rise would have kept to the spending targets set by council officers by cutting the amount spent on e-government, reducing the amount spent on school transport and making schools pay for their own repairs.

"That alone would save £4million," said Coun Welsh. "Schools have £30million in their reserves to spend and we should use it." Liberal Democrats proposed a 5.72 per cent rise, saving money by reducing the members' transport budget, reducing the amount spent on reforming the county's political process, slashing the e-Government budget and removing the subsidy paid to the staff restaurant.

They would also have spent more on winter maintenance after the county was accused of not gritting the roads recently. "The problem is that some departments have got away for too long saying they can't make cuts or meet targets," said Coun David Whipp.

But Coun Martin said: "Our budget is prudent for the future. We need to look to the future.

"The rise is higher than we would have liked but we need to maintain services."