HOMEOWNERS in Preston could face a 4.5 per cent jump in their council tax.

A report on the council's budget proposals for the coming financial year will be considered by councillors at a full cabinet meeting later this month.

It gives a range of options for investment and reductions, including proposals for up to £1 million to be put into key services.

Bernard Hayes, director of finance and property services, said: "Council officers have presented a full range of economies and efficiencies to enable investment in key services and priorities. Members will decide how the council should move forward and what the overall level of council tax should be."

He added: "The government have set the council's guideline increase at 4.5 per cent, or 15p a week for Band D taxpayers. This is only a guideline and members will make the final decision on any level of increase."

He said the current investment options included leisure centres, the market and Preston's parks. Also, the council aims to invest in community safety through extending CCTV, enhancing the local environment and transport, and attempting to secure government, lottery and other external funding.

The local Liberal Democrat group have announced that they will not support a council tax increase of 4.5 per cent. Instead, they proposed a budget with 2.5 per cent increase in line with inflation.

Councillor Bill Chadwick, leader of the Lib Dems, said: "We believe that most reasonable people will see that a nil increase represents an empty gesture, given rising prices and wage levels.

The increase of 4.5 per cent is excessive but 2.5 per cent hovers around inflation and will still permit growth rather than stagnation."

Their line will put pressure on the other groups to negotiate a lesser council tax increase.