Local Government Minister Brian Gibbons said today he did not expect a leap in council taxes next year, despite councils complaining about a lack of central funding.

County hall leaders say they will face tough choices thanks to a below-inflation settlement increase of about 2.9% from the Assembly Government.

Appearing before a committee of AMs today, Dr Gibbons would not be specific on what level he planned to cap councils if they tried to make up the cash shortfall through tax hikes.

Asked if he would allow an authority to put up taxes by 8%, he said: "I would take a lot of persuading.’’ He told the Assembly's Local Government Committee he saw no reason for councils to depart from the recent trend in tax rises. This year they rose by an average 3.8%.

Dr Gibbons said: "We know what the uplifts have been over the last two or three years. We don't think the circumstances have changed to justify a wild deviation from that.

"Certainly 8% would be difficult to understand, but we don't want to pre-judge an individual authority's case.’’ He said the Assembly Government had not yet had feedback from the 22 councils on their response to the planned funding settlement he gave notice of last week.

"But I would not anticipate that anybody would come in looking at that order,’’ he added.

Councils are facing a big increases in their fuel bills and their leaders warn tax payers will feel the consequences of a spending slowdown, either through higher bills or service cutbacks.

But ministers insist every part of the public sector - including councils - must tightening its belt.

Shadow local government minister Nick Ramsay said: "Brian Gibbons is deluding himself and insulting everyone else if he thinks council tax will not go up next year.

"The Labour-Plaid Cymru Assembly Government is short-changing local authorities in every part of Wales with a below-inflation settlement which will inevitably lead to higher council tax and cuts to frontline services.

"Dr Gibbons must be the only person in Wales who thinks this financial deal is good news for councils and council taxpayers.’’