COUNCIL tax is expected to rise in Worcester following three years of freezes – after the city’s new Labour leadership accused the Government of being “phoney”.

The city council says Chancellor George Osborne is placing town halls in a “worse situation” than first feared following yesterday’s Spending Round, which outlined plans for the country’s finances in 2015/16.

A consultation will now start in July to see what residents want doing to council tax, with the prospect of a hike for the first time since 2010.

Mr Osborne has offered to extend town halls a cash sweetener to carry on freezing the bills, which until now has been worth a rise of around one per cent on each household.

But he simultaneously slashed funding to the government department responsible for funding local authorities by 10 per cent in 2015/16 - meaning councils face savage cuts.

Councillor Richard Boorn, the city’s finance chief, said: “The current medium-term financial plan we’ve got is woefully inadequate to deal with what’s been put before us.

“When you look at this announcement, we’re in an even worse situation than before.

“Eric Pickles (local government minister) sits there like he’s a tough guy but we are dealing with people’s lives.

“It’s just cut, cut, cut. I am struggling for words.”

He said under the existing plan, a 1.99 per cent council tax rise was originally due to kick in from April next year - ahead of a consultation this summer.

“We’ve lost £1.4 million in revenue for the freezes over the last three years,” he added.

“The funding from the Government is an irrelevance, it’s the sustainability of it which is the problem.

“Anyone who doesn’t think this won’t affect councils is living in a fantasy world.

“I can’t say we will definitely put it up, because we need to do the consultation, but I understand the problem we have.”

Labour tried to get council tax increased by almost two per cent this year during a crunch council vote in February, but it was defeated by the previous Tory leadership, which took a £50,000 cash reward in return for the freeze.

But the party took over from the Conservatives in May following a shock coup, backed by the Lib Dems and Green Party.

A rise next year would add £3.23 to the yearly £1,453 average band D bill, raising £93,000 in income, because the city council is responsible for 11 per cent of the bill.

The chances of a rise depend on backing from the Lib Dem group and Green Councillor Neil Laurenson, as the Tories are likely to oppose it.

MEANWHILE, IT’S BETTER NEWS FOR SCHOOLS.....

A FAIRER funding formula for schools is finally on the way - with Chancellor George Osborne admitting the current system is “unfair”.

Mr Osborne has pledged to create a “historic reform” of the existing formula, which sees Worcestershire children get £1,088 less than those in Birmingham.

The county is 146th out of 150 education authorities for funding and yesterday Mr Osborne said it would be changed after years of campaigning.

Name-checking Worcester MP, Robin Walker, he said: “School funding across the country is not equally distributed, but done on a historical basis with no logical reason.

“The result is that some schools get much more than others in the same circumstances.

“It’s unfair and we’re going to put it right.”

Under the changes, poorer funded schools will get bigger slices of cash in 2015/16, while a consultation takes place over an entire overhaul of the formula for the period after.

Crucially, it will be aimed to closing the huge disparities which exist around the country.

Mr Walker said: “It’s a great victory for everyone who had campaigned for this.

“I didn’t expect my name to be mentioned but it was nice.”

He added: “This is by no means the end of the story and we must still push for every inch of progress that can be made between now and 2015 but there is no doubt that this a big victory for Worcestershire schools, Worcestershire teachers and most of all, for Worcestershire pupils.

“I am honoured to have played a small part in their campaign.”

West Worcestershire MP Harriett Baldwin said the schools announcement was “particularly welcome”.

The Government did introduce the £2.5 billion pupil premium in April last year, which was meant to reduce the differences between the worst and best funded areas, but it currently stands at £3,622 per pupil.

THE SPENDING ROUND - WHAT YOU NEED TO KNOW

* Cuts of £11.5 billion to Government spending nationally, but schools, NHS and defence is protected
* A new welfare cap to be set for April 2015 for four years - including housing benefit, disability benefits and tax credits
* Scrapping of winter fuel payments for pensioners in hot countries under a “temperature test”
* Funding will be given to councils for a two-year freeze council tax, saving an average £100 on bills
* There will be no reduction in numbers of soldiers, sailors or airmen. The civilian defence workforce will be cut
* The intelligence services budget will increase of 3.4 per cent
* School spending is protected in real terms and funding has been earmarked for 20 new studio schools and 20 new university technical colleges
* Parts of health and social care budgets will be brought together so that by 2015/16 more than £3 billion will be spent on services for older people jointly commissioned by NHS and local councils
* The Government says it will embark on the largest programme of investment in roads for 50 years and in railways since the Victorian age
* Total spending for 2015/16 will be £745 billion - £120 billion lower than if it had risen at the average rate of the last three decades