COUNCILS across the region have been able to limit tax rises after a hand-out from the Government only weeks before their budgets were set.

The funding from the Chancellor is estimated to have shaved three per cent off anticipated council tax rises and keep the increases to the lowest for 11 years.

Local authority leaders last night welcomed the cash injection but called for greater help from the Government in future to make sure services are not cut and householders are not hit with massive increases in their bills.

Durham County Council leader, Ken Manton, who is also vice-chairman of the Association of North-East Councils, demanded a fairer grant settlement for the region's authorities.

"The Government have done rather well this year, but we need to address the funding arrangement in the country. We need to make sure the North-East gets a fairer share of the cake to take into account the economic development we need and the number of elderly people we have here," he said.

Hartlepool's elected Mayor Stuart Drummond, whose council set an increase of 4.9 per cent, also welcomed December's settlement from the Government.

But he said: "We feel the Government should be funding us for three or four years at a time which would make financial planning a little easier.

"The elected mayor is in office for four years and there is political stability, so why not give us financial stability too?"

The Local Government Association also called for longer-term solutions to the annual problem of budget cuts and council tax rises.

Chairman Sir Sandy Bruce-Lockhart said: "With the help of late one-off funding from the Chancellor, councils have done everything in their power to keep the lid on council tax rises this year, but we are left with a funding black hole for next year."

Speaking at the end of last week, before the publication of figures released by the Chartered Institute of Public Finance and Accountancy, Sir Sandy said: "If local government is to continue to improve, it must no longer be left to stumble from one year to the next with last-minute financial fixes from central government.

"We need a longer-term funding solution that takes the pressure off council tax payers and puts the responsibility to deliver efficiency and effectiveness firmly with accountable local councils."

Mayor Drummond said: "It is difficult to make any long-term plans because we only get a settlement year on year. There is no guarantee that the sort of settlement we have this year will continue next year and beyond."