COUNCIL Tax levied by Malvern Hills District Council will go up by at least 7.5 per cent, an average of £7, despite an increase in Government grant.

The council's finance spokesman Paul Cumming said the increase, of half a per cent, did not offset historic underfunding of the authority.

He said the Conservative-run council would press on with a rise of 7.5 per cent, in line with its three year financial plan, but would be hoping not to push that figure higher.

Its plans had been based of a higher increase in Government grant.

Mr Cumming said: "We've been given a 0.5 per cent rise on last year's grant, when the Government promised there would be no rises less than 2.3 per cent. We had budgeted for a rise of two per cent. I'm very unhappy, both for the council and for the residents of the district, because I think we have got an extremely unfair deal.

"We've now had a rise of 2.2 per cent over four years, when inflation has been rising at 9.3 per cent.

"I can only conclude that the Government does not want to properly fund the Shire districts."

The Council Tax bill is made up of levies by MHDC, parish or town councils, the police and Worcestershire County Council, the latter being the largest element. In some areas Malvern Hills Conservators also raise a levy.

Worcestershire County Council also received news of its settlement this week. A spokesman said it was too early to say what the settlement, worth £365.75 million, meant for bills.

A 5.85 per cent increase in Worcestershire's education grant, meanwhile, has been labelled as "criminally unjust" by Dyson Perrins headteacher Peter Buchanan.

Mr Buchanan said if his school was getting the national shire county average, he would get an extra £280,000 a year - enough to pay for nine more teachers and to double the books and equipment spend.