A COUNCIL forecasting a tax rise of 4.5 per cent has revealed that a detailed survey of taxpayers did not favour lowering council tax by cutting services.

Others told Harrogate Borough Council they were prepared to pay an inflation-linked tax rise plus £5 to fund service improvements.

A report to the cabinet by Val Hunter, head of the council's financial management, said outcomes of the survey are considered valid for the budget process.

As a result, she had included them as part of the budget setting process.

In her report to the council's cabinet Ms Hunter pointed out respondents favoured service improvements in food safety, concessionary fares, play areas and refurbishment of public toilets.

Meanwhile, those consulted did not want to see service cuts in public toilets, street sweeping, litter collection, closed-circuit television coverage, parks and open spaces.

Ms Hunter said total spending needed for 2005/6 had increased by £250,950 from an estimate of £20,034,000.

"Continuing saving exercises meant inflation and other increased costs could be met without undue effect on public services," she said.

"This means, however, that it is now very difficult in most areas of activity to find further meaningful savings without reducing services to the public."

Harrogate's grant settlement from the Government has increased by 6.9 per cent, the second highest in North Yorkshire, compared to an average for county districts of 5.1 per cent - and an average for shire districts of 4.8 per cent.

Meanwhile the first draft budget includes increased costs of £750,000 for the Government's new concessionary fares scheme offering free travel for qualifying passengers.

The finance chief says the extra Government grant for the scheme is estimated at £640,000, a gap of £110,000.

The cabinet will consider the report on Wednesday.