RESIDENTS can expect another inflation-busting rise in council tax: but it won't be as bad as last year.

That's the early indication from town hall bosses after the Government announced what Bury Council would get towards the 2004/05 budget.

Bury has been given a grant rise of 5.9 per cent, one of the highest increases in the country and the highest in the region. Councillors have promised to pass on to schools the full increase they have been given for education.

However, extra money for education and social services could lead to cuts being made in other areas, particularly highways.

Finance staff will be looking at the details and the implications of the settlement over the next few weeks.

Last year, Bury raised council tax bills by 11.7 per cent, the highest rise since the tax started ten years ago. However, even this was less than the national average rise of 12.9 per cent.

The Government has threatened to cap councils who levy "excessive" increases, thought to be those which approach double figures. Very early indications suggest that Bury's tax rise might be half of that imposed last year.

The deal was given a cautious welcome by Councillor Wayne Campbell, deputy leader of Bury Council and executive member for resource.

"We are pleased that the Government has at long last recognised Bury's chronic under-funding through an above-average increase in grant," he said.

"However, this will not solve Bury's funding problems, especially in social services, and we see this settlement as merely the Government starting to address a history of central government under-funding for Bury."

Coun Campbell added: "We will be pleased to passport through all government funds allocated to schools.