IT looks like there's going to be one hell of a bun fight in council chambers on February 28 as the various political parties sit down to set this year's budget.

But the early signs suggest that council tax payers across the district are likely to face an increase in their bills of around 4.1 per cent.

The ruling Independent group claim to have put the city's finances back on track without massive cuts to services or a major hike in council tax.

But they need the support of other groups to get their budget passed.

The Greens have drawn up an alternative budget which targets civic regalia to save cash for voluntary groups, while Labour have attacked the Independent plans as bad for the local environment.

At the full council meeting on February 28 all five political groups will be trying to get their budget options passed and there are fears it could descend into farce unless a deal is hammered out before then.

Recent Labour scare stories of an illegal budget or council tax rises of up to 60 per cent have failed to materialise and a typical Band D dweller in the district is likely to see their bill rise from around £940 to £980 per annum.

Announcing Independent proposals, finance chief, Cllr Geoff Wilson, said: "The scaremongering by Labour has proved unwarranted. Because their party continually spent more than its income when in power, raiding balances and borrowing money to pay off debts, the city council was left in dire financial straits.

"We've made radical changes to bring the finances back on an even keel and ensure the council takes on best business practise for the benefit of the people it serves."

He added: "It also puts the council on a firm financial footing for the future with the next two years showing funding available for growth throughout the district."

But their proposals include unpopular measures. These include a £60,000 reduction in the allocation of grants to local voluntary organisations, not filling 21 vacancies at the town hall, increasing car park charges and scrapping a district-wide traffic survey planned for this year.

The Greens are particularly upset at a proposal to sell off a prime site in Lancaster which was earmarked as a drop-in centre for the elderly.

And they want to continue funding voluntary groups at the expense of civic functions and the mayoral car!

"The Independent budget isn't that bad," said Jon Barry, "but we think the MBI should continue funding voluntary groups which do great work in the community and make further savings by reducing tourism advertising and mayoral luncheons. We'd also get rid of the mayoral car."

Labour's Cllr Ian Barker expressed concern about cuts to environmental services: "We will see more rubbish and litter on the streets. There will be more weeds on our streets and back alleys and roadside verges will look more like hayfields."