COUNCIL tax is expected to increase two per cent in Worcestershire - with the county council desperate to stave off a children-in-care funding crisis.

The Conservative leadership has unveiled proposals for a second household rates rise in two years from April, adding at least £20.54 to the average band D bill.

The suggestion has come about after the council raised serious concerns about children's services, with the number of youngsters in care rising nine per cent over the last year to 700.

A council tax rise of 1.94 per cent would mean an extra £4 million could be pumped into the service to cope with demand.

A new report on the budget for 2015/16, set to be discussed by the Conservative cabinet on Thursday, spells out the stark funding situation at County Hall.

Finance chiefs have now upped the savings requirement by an extra £9.8 million, saying around £25 million needs to be cut from spending every year up to the end of 2018/19.

Bosses have already identified £59 million of savings alone over the next three financial years.

The report says in common with other councils, the county is facing "significant pressure" on children's care, and a tax rise would pump a fresh £4 million into the service.

The proposed increase, which would be subject to a vote in February at full council, follows the same hike this year but freezes in 2011, 2012 and 2013.

Councillor Simon Geraghty, county council deputy leader, said: "The budget is under strain and there is considerable pressure on the council's finances.

"Demand on children's services has gone up, we can all speculate as to why but if you look around the country it's not unusual, it's happening everywhere.

"That pressure remains and it's got to be financed."

Labour group leader Councillor Peter McDonald said: "All we're seeing is more cuts and rates going up, it's pushing people towards poverty once again.

"This is typical that we are seeing this once again, people's wages are not going up two per cent a year are they?

"The cuts are taking us back to the 1930s."

The end bill to taxpayers could rise further as the police and fire service still need to set their precepts, while Worcester City Council, which controls just 11 per cent of the bill, is expected to freeze its portion.

The police controls 12 per cent of the bill and fire service five per cent, with the county council handling the bulk of the rates, at 72 per cent.

In recent years the Government has capped council tax increases at just under two per cent, meaning any authorities which go over that threshold can only do so via a referendum, with each council offered a financial sweetener from Whitehall worth a one per cent hike in return.

The cap for 2015 is yet to be decided, but the county council has decided to reveal its strategy now under its usual timetable.

There are suggestions in The Guardian newspaper today that the cap could be slashed to just one per cent next year in a shock Government move to help hard-pressed householders, meaning if that proves accurate the council's stance would need to change.

But reducing that threshold is widely believed to be unpalatable among ministers because of the impact it would have on under-pressure councils, as well as the police and fire service.