Essex residents could face a council tax rise of almost ten per cent.

If the county wants to spend as much on education as the Government wants it to, Essex County Council finance officers say a 9.8 per cent hike is needed.

Lib Dem councillor Tom Smith-Hughes said: "The increase of 9.8 per cent is because our services are underfunded by central government.

"If we spend the amount the Government wants us to on education this would be an extra £13.7 million."

If Essex puts the extra money into education it would still leave a £45.3 million shortfall between the amount the Government gives the council and the amount Essex wants to spend.

Essex County Council wants to spend £976m and the Government's recommendation is £931m. The Government also wants Essex to spend £20m less on social services than it wants to.

Councillors on the county's corporate strategy committee will discuss the 9.8 per cent proposal tomorrow.

Committee chairman Conservative Lord Hanningfield, said he was unhappy about the proposed increase.

He said he supported the extra cash for education, but said the Council Tax increase was mainly caused by over-spending on social services. We haven't got any balances and have to replenish them.

"When we were in control we brought them to £12m and they have disappeared. One part of this is to put that into balances," he added.

But Mr Smith-Hughes, vice chairman of the committee, warned the budget being proposed did not allow for increasing numbers of elderly and children the county had to provide services for.

He added: "Because we are being underfunded on social services and other services and need to spend more that the Government says we can, the increase would be an increase on council tax of 9.8 per cent."

The Labour spokesman was unavailable for comment.

A final decision on the rise will be made by councillors on February 15. Southend and Thurrock unitary authorities will not affected as they set their own budgets.

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