COUNCIL tax payers will benefit from an above inflation cash settlement from Whitehall, according to the Government.

But, as Local Government Minister Nick Raynsford announced next year's deal for councils, many North-East authorities were bracing taxpayers for increases up to double the rate of inflation.

As a survey by The Northern Echo reported last week, many families could be looking at a two-digit rise in council tax.

Middlesbrough's council tax payers could be looking at 16 per cent, while North Yorkshire householders face a 9.5 per cent increase.

However, Mr Raynsford insisted: "This year's settlement is excellent news for local authorities. Last year, we were able to guarantee authorities an increase at least in line with inflation, but this year, we have gone a step further and every authority will receive an above inflation increase."

This year's funding settlement is the first under a new formula brought in to reflect shifts in population and take into account changing demands placed on councils.

Yesterday's final figures follow on from the provisional settlement announced by the Government in December.

The minister said: "This year's good increases mean councils should be able to continue to deliver improvements in the services they provide while keeping reasonable council tax increases."