COUNCIL tax in Torfaen borough is set for a massive rise - to cover a £1.7 million shortfall in the council's budget.

Finance bosses warn a rise of 19 per cent is necessary, meaning the average band D taxpayer will face a rise of approximately £134 over the year.

The projected rise, due to be discussed by councillors tomorrow, would follow last year's 9.5 per cent increase, which was blamed on underfunding from the National Assembly.

The cabinet committee will meet to discuss ways to cover the shortfall but it is understood that major cuts to council services have already been ruled out.

The cash deficit comes from highway maintenance, leis-ure, youth and culture, and social services - though the report suggests £1 million "would place social services on a more sustainable footing."

The report also states that "the sum of £1.7 million is to be regarded as a conservative assessment to maintain existing service levels, ie with no growth.

"If this is not financed, significant reductions in service will be required."

The only solution offered in the report is a rise in council tax of between 10 and 19 per cent - which may be coupled with significant cuts to all departments.

Councillor Brian Smith, leader of Torfaen council, said: "Council tax in Torfaen has always been among the lower charges levied by Welsh local authorities and we expect this situation to continue in the next financial year.

"However, like all local authorities, the council is bearing the cost of exceptional inflation pressures relating to pay awards, national insurance, and pension funds.

"Increased funding from the National Assembly is not enough to offset this.

"We are considering a range of options for the council budget which include an increase in council tax of up to 19 per cent.

"While I regret that there may be a need for an increase of this size I am confident that our council tax levels will stay in the mid-range for Wales with good and improving local services.

"We will continue to streamline our operations to ensure maximum efficiency and the increase in council tax will make sure that we can avoid making cuts in important council services to our communities."

Newport and Monmouthshire will not decide on a figure until February.

Other boroughs ponder their financial outlook BLAENAU Gwent council is due to have its first budget meeting later this week, leader John Hopkins said. Councillor Hopkins added the authority recently received its settlement from the Welsh Assembly and the director of resources was presently looking at the implications for services and the council tax. A special meeting of Caerphilly council's policy and resources scrutiny committee is being held later today, when they will consider a report on the revenue budget strategy for the next financial year. The report to a recent cabinet meeting says decisions have yet to be taken on budget increases - but suggests focusing on options between 8.5 and 9.5 per cent. Increased spending of nine per cent would result in a council tax rise of nearly eight per cent.