BLACKPOOL taxpayers looks set to face an inflation-busting 8.9 per cent council tax hike -- and the council could face action from the Government to keep the figures down.

Members of Blackpool Council's executive were expected to agree on the figure at a meeting last night -- despite warnings that the Government expected increases in the 'low single figures'.

The increase has been blamed on fctors such as a disappointing settlement from Government and increasing costs in insurance, social services, as well as extra cash for education.

Another major factor relates to the 2001 census. That showed a fall in the resort's population, leading to a grant cut, but town hall bosses are unhappy that other data, showing the resort's ageing population and social problems, have not yet been included in Government calculations.

Council leader, Cllr Roy Fisher, said before the meeting: "The Government has made its position quite clear -- they are expecting increases in the low single figures. Anything over five per cent will be looked at very carefully. We have written to (local government minister) Nick Raynsford, to explain our position.

"We have made efficiency savings, we are not being extravagant in our spending."

The council had, he added, slashed £2 million from its budget without cutting jobs or services.

With town hall coffers down to £3.5million -- against a recommended £5 million -- after over-spending this year, Cllr Fisher said the reserves had 'served their purpose' in helping to fund overspending this year and pledged to increase them over the next two years.

The budget will see the council increase spending on social services by £750,000 next year, set aside £300,000 for a proposed urban regeneration company to encourage investment in the resort and spend more on education, which accounts for almost half of total spending.

The council's capital budget, largely funded by external grants, will increase from around £35 million to £60 million, most of it for education and regeneration.

If the budget is accepted, Blackpool's share of council tax for an average Band D home, will be £1,030.17p. Lancashire's Fire Service is likely to charge around £50 with Lancashire Police proposing a large increase on its current £87.57. Most houses in Blackpool are in lower bands A,B and C.

Voters in Wyre and Fylde are likely to face lower council tax increases. The bulk of their tax payments go to Lancashire County Council, which will raise taxes by just 3.5 per cent, though cash-strapped Wyre and Fylde Boroughs are expected to make larger increases. The increase is the lowest of any shire county, but Lancashire taxpayers still pay more than those in Blackpool.