RESIDENTS in East Dorset could be looking at a 22.9 per cent rise in their district council tax bills just to maintain services.

The cash-strapped district council which serves Wimborne, Ferndown, Verwood and Corfe Mullen, plus dozens of villages, says a number of factors beyond its control has put it into an "extremely difficult" financial position.

The authority is one of only two in the country which does not receive Revenue Support Grant funding. Yet it must fund the government's Concessionary Fares Scheme, honour the higher-than-expected pay award settlement for Local Govern-ment employees and follow the recommendations of an independent panel set up to look at members' expenses which more than doubled what it was currently paying.

Together with falling interest rates on investments and fewer lucrative planning applications from large scale developers coming in, it means the council is facing an extremely tough year.

The council's head of finance, Vic Smith, said: "We are in a very difficult position through circumstances beyond our control. A worse case scenario is about a 22.9 per cent increase just to keep services at the same level and include the £42,100 worth of planned im-provements this year.

"But if we do that the government would fine us under the Subsidy Limitation Scheme which would mean another rise taking it to 23.8 per cent."

Average Band D households currently pay £105 of their total council bill of £922.83 to East Dorset each year. Under the proposals the cost could rise to £130.06.

Members will decide on a budget strategy at a meeting of the council's finance and resources committee tomorrow. If members choose to limit the increase to less than £130.06 then some services would have to be curtailed or possibly discounted.