THE LIKELIHOOD of a steep rise in council tax grew this week with the announcement of a government grant in which the South West will get a tiny share.

As a result, council tax payers in West Devon could see an increase of at least 7 per cent, well above the rate of inflation, according to a Devon County Council spokesman.

'This is because the Treasury has already assumed council tax will rise 5 per cent to pay for public services. There is also a change in the amount the South West pays towards the South East, which adds 1.5 per cent. Finally, there are penalties the government imposes for exceeding the standard spending assessment, which adds another 0.5 per cent.'

The county will set its council tax on February 22. It is still waiting to learn the amount of the teachers' pay rise and how much the government will pay towards it, as well as the rate of success in collecting council tax for the current year.

On top of the county rate there are borough council and police authority figures to add. A West Devon spokeswoman said the council was just starting to consider its budget this week and would reach a decision on March 6.

The government said this week it would give an extra £190-million to relieve the council tax burden, but it is doubtful whether the South West will receive more than about £2-million of this.