WIRRAL council tax payers are facing an increase of 4.5% in their bills for the year 2006/7.

The Labour group, the largest party in the hung council, put forward its budget at a cabinet meeting last night.

Although the two other party groups will put forward their own amendments, the budget is likely to be adopted at next week's meeting of the full council.

The council tax increase would mean residents in Band D properties paying £1,276.81, while those in Band B would pay just over £993.

The bulk of the increase has been caused by a proposed extra £9.3m to be spent on social services in the borough.

Council leader Steve Foulkes last night defended the increase, made up of 4.46% for Wirral Council, rising to 4.49% when police and fire authority precepts are added, saying the increases would lead to major new investments at a price of less than £1 a week for most residents.

However, the Tory group, which voted against the budget, condemned the increase as being almost double the rate of inflation.

Leader Cllr Jeff Green said: "To be fair, this government is starving this borough of cash while at the same time giving us new and costly things to do. But this budget is a wasted opportunity.

"It is a waste because no action is being proposed to introduce effective management of the social services budget.

"The department overspent by £5.3m last year, a further £3.6m this year and is to get another £9m next year. The department does critical and valued work but we have to ensure proper accounting procedures and value for money."

Cllr Stuart Kelly, leader of the Lib-Dem group which abstained in last night's vote, said: "The increase is inevitable, given the very poor government settlement that we received."

Under the budget, an extra £7.6m will be spent on Wirral's schools, equivalent to a 7.2% increase per pupil and will pay for free swimming for young people and pensioners, and up to eight new five-a-side soccer pitches.

The free ERIC waste service, which picks up bulky items for disposal and was axed last year, will also be temporarily restored.

* The Conservatives last night claimed that some council tax bills had risen by 84% under Labour, as the Government sought to play down surveys showing average increases this year would be twice the rate of inflation.

Surveys in national newspapers quoted figures ranging from a 4% to 4.3% increase for householders in April.

Local government minister Phil Woolas said research showed the government that "Labour councils are once again proposing lower council tax increases than their Tory and Liberal Democrat counterparts".

But Tory local government spokesman Eric Pickles said: "Under Labour, Band D council tax bills have increased by 84% since 1997 showing to all of us the true cost of New Labour.

"The fact that 'average council tax' bills tend to be lower per dwelling under Labour has nothing to do with the spending decisions of Labour councils. It is merely a reflection of the fact that property values tend to be lower in Labour areas."

Prime Minister Tony Blair's official spokesman said the true picture on council tax increases would not be known until the end of March.

He added: "Our expectation is that most council tax bills should be below 5% and, if necessary, we are prepared to use our capping powers.

"It remains the position that it is local councils that set the council tax and therefore it will vary from area to area."

Annual increases in bills had fallen in recent years, while grants from central government to councils had risen faster than inflation, said the spokesman.