COUNCIL tax payers in Bolton are facing a record rise in bills of 14 per cent, new council figures have revealed.

Town hall finance chiefs believe the hike will be required just to maintain council services at their current level and implement improvements demanded by the Government.

If approved, the rise -- which would come into effect in next April -- would see the annual bill for an average band D property leap by £162 to £1,320.

The move would follow a rise of just 3.9 per cent in April -- one of the lowest in recent years -- set by the Labour administration before it was replaced by Liberal Democrats leadership after the election.

The figures, complied by the council's director of finance, Steve Arnfield, have been worked out using indications from the Government as to what grant the council will receive from Whitehall.

He estimates it may have to impose an increase of up to 11 per cent while believing the police and fire authorities could charge a precept of around three per cent.

Mr Arnfield claims much of the increase is due to Government funding not covering the cost of improvements being demanded, particularly in areas such as education and social services.

Consultations will be carried out with the public via the area forums before a budget is set early next year.

Before the last tax rise in April, Lib Dem leaders -- then in opposition -- warned a low rise would result in cuts or a large council tax hike next April when the 2004/5 budget was set in February.

As part of the move, £1.4 million was taken from the council's balances, sweeping cutbacks worth £1.8 million were introduced and councillors took a ten per cent drop in expenses.

Council leader Cllr Barbara Ronson said: "These figures are our best estimate at the moment.

"The Government is suggesting a rise of six per cent but even that will be difficult to reach.

"Services have been run down and I don't see how we can go much further with cut backs.

"We will pass all of the funding to schools but all other departments will have to look for savings."

Both the Liberal Democrats and the Conservatives have accused Labour of contributing to the problem by keeping last year's rise artificially low to curry favour with voters before the all-out council election last June.

Leading Conservative, Cllr John Walsh, said: "The budget is in a serious state, unless the Government puts more funds in or there are massive cuts, the council tax rise will be enormous."

But Labour leader Cllr Cliff Morris hit back saying both parties had the chance to suggest their own budgets.

The move would follow a rise of just 3.9 in April -- one of the lowest in recent years -- set by the Labour administration before it was replaced by the Liberal Democrats after the election.