HOUSEHOLDERS in South Ribble will have to foot the bill for a quarter-of-a-million pound shortfall in government grant this year.

Council tax will rise by eleven per cent in April which means South Ribble residents will have to pay up to an extra £100 this year.

The increase has prompted borough councillors to consider getting shut of the mayor's Daimler Limousine in a series of cost cutting exercises.

The average council tax payer in band D will be paying £688 this year compared with only £642 last year.

The cheapest tax, for band A properties, is £459 compared with £428 last year.

While householders in the luxury H band will be paying £1,377 compared with £1,285 last year.

Councillors blame the government for the cuts after the Department of Environment based this year's grant on 1994 expenditure instead of 1996-97.

Councillor Bill Evans said: "We've a few cost cutting ideas in the pipeline although there will be no cuts in the borough's services.

"The mayor's Daimler only does about eight-miles-to-the gallon, so we're thinking of replacing it with a hired car. By getting rid of it we would be making a huge saving."

But Coun Neva Orrell, Liberal Democrat leader, said the government cuts were to make up for cuts in Income Tax last November.

She said: "What people have gained in Income Tax cuts they've lost through the council tax - they've lost a lot more than they've gained."

And councillor Kenneth Palmer, Conservative leader, blamed the Labour council for the rise.

The increases will take effect from April.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.