COUNCIL chiefs and politicians across the region last night expressed disappointment and concern at local authority spending levels unveiled by the Government.

The Tories claimed that council tax payers face increases in double figures after Local Government Secretary Stephen Byers unveiled how much local councils will be allowed to spend in 2002-2003 - £47.3bn, a 7.4 per cent increase on the current year.

While he insisted that under the settlement "there is no reason why we should see large increases in council tax next year", shadow local government secretary Theresa May said this year's deal would leave many local authorities struggling to maintain services and council tax payers facing rises "well into double figures".

The Tories' view was echoed by many councils in the North-East and North Yorkshire last night.

Durham County Council, the region's biggest local authority, described its provisional figure of £389.8m as disappointing.

The Labour council got the second lowest rise of any authority - 1.7 per cent.

While a spokesman stressed it would be several weeks before it could estimate the impact on council tax levels, he said: "At the moment we would say the provisional figure is on the disappointing side.''

A spokesman for Darlington Borough Council also said it was too soon to say whether its annual settlement figure would have any implications for council tax payers, but residents of the borough will be watching anxiously in the coming months as the council calculates next year's bills, following a 12.5 per cent increase in the average bill for the current financial year.

In Prime Minister Tony Blair's Sedgefield constituency, borough council finance officials said its shortfall would have to be met by tax payers.

Director of finance Brian Allen said: "There is no doubt this is a poor settlement for Sedgefield. Government support has gone up for Sedgefield by 1.8 per cent, which is well below inflation."

Senior council chiefs in North Yorkshire warned they would face a struggle to maintain front-line services as a result of the announcement.

Rural residents were told to expect a rise in council tax significantly above inflation.

County council leader John Weighell said: "Rural counties are facing a difficult situation - and even more so in North Yorkshire because of the devastating effects of foot-and-mouth, last year's floods, and other crises."