RESIDENTS facing a five per cent rise in council tax have today been reassured the increase could be reduced.Despite an initial set of sums being approved by Mid Suffolk district council homeowners have been told it is too early for alarm.

RESIDENTS facing a five per cent rise in council tax have today been reassured the increase could be reduced.

Despite an initial set of sums being approved by Mid Suffolk district council homeowners have been told it is too early for alarm.

The council, still struggling after a dire financial problem last year when a shortfall of £1.57million had to be found, has said the process for setting the authority's budget for 2005/6 is at an early stage.

Roger Saunders, leader of the council, said: "Five per cent has been used as an initial figure as it's likely to be the upper limit the government allows local councils to rise by but our aim is to make it less than that.

"It is a base to work from so our officers are not running round in circles.

"It's a very sensitive issue for a lot of people – me as much as anyone.

"We are very aware of how much of an affect it has on people but if the government don't give us money to get on with it, like it or not, we have to raise money from the local system.

"Unfortunately with this process there are so many factors we can't control.

"At the moment the government gives us about 60 per cent of what we spend and if it changes even slightly it can make a big difference."

The council has told staff there would be no redundancies and said there were no plans to further increase the unpopular car parking charges in Stowmarket.

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