A HIKE in council tax and a cut in services are on the cards for Medway residents. Medway Council looks set to increase council tax by twice the rate of inflation but this could jump even further if council bosses decide to increase spending on social care, which is underfunded by £9 million.

Cabinet finance leader Alan Jarrett blames a cut in Government support for social care on the proposed 4.6 per cent council tax increase. He said: "4.6 per cent is very low. In Kent, they have increased it by 9.2 per cent. But 4.6 per cent is the bare minimum we can increase it by and if we need to increase it further we will do so.

"The final figures haven't been done in terms of how we will approach the funding of social care and we need to figure out how we can get more money for that." He added: "We can't underfund on social care as it is a needs-driven service so if we increase the 4.6 per cent there will be clear reasons for it.

"This underfunding is caused by the Government and it is a national problem - they are saying we should generate the money from local tax payers." Councillors will be told every one per cent increase above 4.6 per cent will permit additional council spending of £565,000.

The new budget also looks set to make a series of cuts in services, including more than £1 million in unspecified savings. It is believed a total of £230,000 will be saved by reviewing the provision of black refuse sacks. A further £240,000 could be put back into council coffers by delaying the implementation of the abandoned cars directive.

Deputy Labour leader and finance spokesman Glyn Griffiths is furious with the proposals.

He said: "This is appalling. They are increasing the council tax and cutting services - the two things they said they wouldn't do when they came into power."

The proposals will be discussed in a cabinet meeting tomorrow. The final figure will be agreed on February 28.