COUNCIL tax could rise by 7.5pc after the draft budget was approved for consultation.

The hike has been made to cover a cash shortfall caused by Government-enforced spending restrictions.

A meeting of Full Council approved the Board's judgement that the only way to continue to deliver the same standard of services was by increasing the tax by almost £9.

Under the new proposals a band D householder who would have paid £119.43 to Crewe and Nantwich Borough Council this year will have to pay £128.39 in 2002/2003.

The plans will now go out to householders to give them a chance to comment. It was also due to be discussed by the council's Scrutiny Committee for budget yesterday, Wednesday.

Board member for Resources, Cllr Dawn Threadgold, said: "The aim of the budget this year is to provide a period of stability after making cuts of £800,000 last year.

"We are going through enormous changes at the moment and cannot afford to lose any more staff.

"The Government has indicated that it expects Councils to raise its rate about eight per cent this year but we have suggested a rise of 7.5pc. This actually means an increase of 75p per month for band D ratepayers.

"Any shortfall, in this case about £200,000, has to be raised by increasing some charges, some in line with inflation and some just a bit more.

"We are also having to think of introducing new charges and these may prove to be controversial, but what we are trying to do is be realistic and fair."

Council leader, Peter Kent, said that the borough had enjoyed the lowest tax rise in Cheshire last year and now needed to build up its reserves which have been deliberately kept low in recent years.

Any comments made by businesses, the public and the scrutiny committee will be passed back to the Council Board on February 14.

All comments will be considered and the Board is to make a recommendation to the Full Council meeting on February 20, which will then give final approval for the budget and set council tax rates.