SERVICE cuts are looming for residents of Weymouth and Portland, a senior councillor has warned.

The alert came as members of the borough council's management committee vowed to limit next year's council tax rise to 'less than five per cent' for crucial budget discussions.

Despite the above-inflation increase, councillors said a likely freeze in government funding would pile more pressure on council spending.

Committee member and former borough mayor Doug Hollings told colleagues the situation was depressing and represented a potential disaster for the borough and its residents.

He said: "Next year is going to be a disaster for local government, a disaster for our residents and a disaster for the council. The council has got new responsibilities for unsocial hours payments and national insurance increases, and we have been told to make more efficiency cuts.

"I really don't know where the money is going to come from."

Finance and Human Resources spokesman Howard Legg said: "The indication is that we have to accept a council tax rise of less than five per cent.

"We have certainly got some problems in terms of trying to satisfy our spending requirements and that means services will be cut again."

Councillors said the council tax rise would bring in approximately £200,000 and would be one of a £1 million package of measures to help counter the expected freeze in next year's government grant.

They include £200,000 of further income, a further £100,000 of extra efficiency savings and a target of £250,000 more from debt management.

Borough council head of finance Jason Vaughan said one saving they were looking at was sharing back office functions with other authorities in the area such as West Dorset District Council.

Coun Hollings urged members of the committee to limit any increase in council tax to three per cent, saying many pensioners could not afford more.

His motion, backed by Couns Mike Goodman and Tim Munro, was defeated by committee members Andy Blackwood, Lynne Herbert, Howard Legg, Kay Wilcox and chairman Brian Ellis. The planned five per cent increase, if carried through, would take Band D bills for a household in the borough up to £224.43 from £213.74.

Last year's borough council rise was 6.91 per cent.