COUNCIL chiefs look set to receive a 4.8% hike in Government funding to help prevent any further increases in Council Tax next year.

The total investment being given to Halton Borough Council for 2004-2005 will reach £5.4m, which is slightly higher than the amount allocated last year.

Overall, local authorities across the North West are celebrating after gaining a hefty £7.22b slice of the grant - marking a considerable increase of £351m.

It is hoped the extra £1 billion and £60 billion aid package handed out to all local authorities in the country will cap the total amount of Council Tax levelled at residents in March.

Cllr Tony McDermott, leader of Halton Borough Council, said: 'The Government has increased Halton's funding by 4.8 % next year, which is slightly higher than our forecast.

'However, the headline £1 billion extra funding for local government announced by the Chancellor will need very careful scrutiny and until all the details are published over the next few weeks it will be very difficult to give a detailed comment on how good the settlement is for Halton.

'The picture will be clearer mid-February.

'But this is a settlement that is higher than expected and, although we are still faced with efficiency gains, it will help us achieve our objectives.'

The national grant of £60 billion includes £26.71 billion revenue support grants, £18 billion business rates, £4.35 billion police grants and £11.05 billion in specific grants.

The 4.8% rise received by Halton, compares with a 5.8% increase in Warrington and 4% rise in Liverpool.

The increased spending was announced this week by local Government minister Nick Raynsford, who stressed there should be no excuse for excessive Council Tax rises.

After the council receives the grant, bosses will then be expected to deliver an average Council Tax increase of less than 5% for 2005-2006.

If necessary, he stated even tougher capping action should be taken next year - which applies to all authorities - including fire and police.

Mr Raynsford said: 'This is a very good settlement for local government.

'We have now delivered above inflation grant increases to local authorities for the eighth successive year.

'This is enough money for local authorities to continue to provide improved services to communities.

'Additionally, every Government department that works with local government is taking steps to keep pressures to a minimum and ensure that all new burdens on local government are funded.

'For their part, councils are expected to budget prudently and generate efficiency gains.

'The information pack we recently sent out to all local authorities set out what the 2004 Spending Review efficiency targets mean for them, and the support Government will provide to secure better, more efficiently organised public services.'

He added: 'Average Council Tax increases in England in 2005/2006 should be less than 5%.

'We used our reserve capping powers for the first time last year to deal with excessive increases.

'We are prepared to take even tougher action next year than we did in 2004/2005 if that proves necessary.

'High Council Tax increases are a thing of the past.

'We will not tolerate excessive Council Tax increases either next year or in years to come.'