HOUSEHOLDS face a council tax rise of five per cent in Worcestershire this year - with a warning that things could be just as bad in 2007.

County Leader George Lord said the rise was unavoidable because of a "poor and disappointing" government grant.

The average band D household in Worcestershire faces a £42 council tax rise on this year - 80p extra every week.

"Our Government funding of two per cent more than last year, which is lamentable," said Mr Lord.

"Council tax makes up 20 per cent of our income every year, and while we do not particularly want to take on the government over this matter, we realise it does mean a £42 rise for a band D property.

"It's particularly hard for pensioners because gas and electricity prices go up while the pension stays the same.

"It has become harder for people to pay council tax but from our point of view we have to try and improve the services and become a better local authority. That costs money."

Households now face another hefty rise next year because the authority said the funding for next year will also be below par.

A £69m grant from government this year will increase 2.1 per cent in 2007.

"What really worries me is not this year's budget, it is next year," he said.

"Government has already confirmed we will have a 2.1 per cent increase in money.

"It means council tax will not be reduced next year. I cannot guarantee front line service cuts will not take place next year either."

Coun John Buckley, who represents Labour, said: "I don't think the Government grant was good - it is poor and disappointing.

"Having said, that the leader never talks about the fact that since 1997 our government settlement increase is 39 per cent."

The band D rate for 2006 is now £899.37, which is £42 up on last year.