THOUSANDS of North-East families will have to pay more than £70 extra for council services as a result of the financial crisis facing local authorities.

Durham County Council, whose budget claims the lion's share of council tax bills in the county, is levying a 14.8 per cent increase.

That will take the sum paid by people in Band A properties - by far the biggest band in the county - from £480.60 to £551.70.

Despite one of the steepest tax increases in the country, services are still facing cuts.

And there will be further claims on home-owners' money as the Durham Police Authority, district councils and, in some areas, parish or town councils, have yet to announce their levies.

The police authority will today consider plans for a "standstill" budget that would require its share of the council tax bill to rise by 17.7 per cent.

The Labour-run county council pleaded in vain with the Government for better funding and at one stage warned that a 32.1 per cent council tax increase would be needed to cover its initial spending proposals.

It has criticised the Government's funding formula for not taking account of the county's needs.

It is hoping that the Government will introduce a fairer system next year.

The council has cut more than £2.8m from its spending plans, including £400,000 from winter road maintenance.

Meanwhile, Cleveland Police Authority warned that Teessiders would have to shoulder an extra council tax burden to keep numbers up.

Ken Walker, chairman of the Cleveland Police Authority, said that the force was facing "serious problems" financially, because Government funding was not enough to cover pay awards and price rises.

The police force - left financially scarred by soaring pension costs - is facing a £6.6m shortfall in its 2002/2003 budget.