PEOPLE in Durham could be paying nine per cent more for city council services from April.

The Liberal Democrat-controlled authority may have to couple the increase with a £900,000 reduction in its spending.

Cabinet member for finance, Carol Woods, said the council hoped to achieve 'efficiency savings' rather than cut front line services. But she warned there could be some job losses under a forthcoming restructuring.

"There will be some rationalisation and we would hope to do that in conjunction with all the people concerned and the unions. We will start at the top and work down.''

A nine per cent increase would take the bill for a Band A house from £107.60 to £117.28.

The city council accounts for 14 per cent of the total council tax bill. Durham County Council, which says its rise will be about five per cent, takes the biggest portion.

Coun Woods blamed the council tax increase on a shortfall in Government funding and the previous Labour administration's handling of the council's finances.

"We are proposing a nine per cent rise in council tax to help us sort out the problems. There is a fundamental problem because Durham City's council tax at the moment is not at the level that the Government assumes it to be at.''

Coun Woods said that the council's predicament highlighted the need for a local income tax, the Liberal Democrat's national policy.

She added that she did not know if the Government, which has called for rises in 'low single figures' would try to cap the increase.

The budget and council tax will be set early next month.

The council is asking people for their views on its proposals and alternative rises of seven and 12 per cent.

Public meetings will be held this Saturday, at The Gala Theatre at 10.30am and on Wednesday, February 18, at the Abbey Sports Centre, Pity Me, at 6pm.

The council is also seeking people's views through a questionnaire. The consultation closes on Friday, February 20.

"There are some difficult decisions to make and that is why we want the people of Durham to tell us their views and be involved in making this decision,'' said Coun Woods.