Council tax bills are set to rise by at least 7.2 per cent despite a councillor's admission it could "land us in hot water" with the people of Essex.

County councillors today flew in the face of Government advice which said the average rise should be no more than 4.5 per cent and provisionally set residents' bills at an inflation-busting 7.2 per cent increase.

County council leader Lord Hanningfield admitted Essex had had a better-than-expected standard spending assessment - the amount the authority is allowed to spend on services - from the Government.

He said: "We can't make the plea that we had a desperately bad settlement compared to other authorities

"In suggesting 7.2 per cent I am taking a little danger because it is quite a bit above 4.5 per cent.

"By going to 7.2 per cent we are putting our feet in a little bit of hot water perhaps, but that's what I have gone for."

Tory Lord Hanningfield's justification for the large hike was to increase spending on education and help offset proposed cuts in social services.

He plans to increase spending on education by £12 million and boost spending on social services to just over £14.6 million.

He hoped this would go some way to "sorting out" the charging policy which came under fire last year when plans to increase the cost of home helps were on the table.

The rise was also needed to meet a shortfall in the cash not generated when the planned sale of old people's homes across Essex was halted.

Labour and Liberal Democrat councillors today agreed the principle of a 7.2 per cent increase, although they both warned they would be coming up with different ways of spending the increased revenue.

Today's agreement was an outline. Finer details of the budget can be changed at the full council meeting next month.

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