COUNCIL Tax bills will have to rise or huge savings made if Halton Borough Council is to maintain its level of service, a report has revealed.

The report, to be presented to the council's executive board today, claims the council will not have enough cash to fund key services unless cuts are made or revenue is increased via a Council Tax rise.

It states: 'It is likely that in 2005/06 and the following years the spending required to maintain existing policies and programmes is expected to increase at a faster rate than the resources available to support it.

'Consequently, there is a requirement to make savings just to maintain those existing policies. In addition, further savings are required to meet the cost of any growth.

'Levels of growth and savings will, therefore, be directly influenced by the decisions made concerning Council Tax increases.

'Higher Council Tax increases will reduce the level of savings that are required, although the Government has repeated that it will use its reserve capping powers to limit Council Tax increases in 2005/06.'

The report comes a week after councillors agreed the borough's top officers should receive bonuses of up to £15,000 a year to prevent them quitting.