TAXPAYERS in West Somerset will face a referendum on whether they want to pay more money or face severe service cuts next year - but at least Council Tax bills will be frozen for the next 12 months.

District councillors are already warning this year's freeze is very much the calm before the storm.

Next year's increases on the district's share of the bill could be at least 30 per cent - or even as much as 50 per cent - as the authority struggles to reverse years of historically low Council Tax increases in the district.

In real terms, a 30 per cent rise in the district council's share of Council Tax bills would equate to Band B residents paying an additional 60p a week, while Band D homes would face a 77p a week increase.

It is estimated the authority could be at least £500,000 a year better off had it increased its precept in-line with other local authorities in past years.

Instead, its percentage share of the bill is some 30 per cent lower than it should be when compared with other district councils.

But with an anticipated budget shortfall of up to £1.3 million looming in the next couple of years, district councillors are now keen to play catch-up.

However, any increase in bills above the Government's capping limit, which is currently set at 3.5 per cent, will mean the authority must hold a referendum to ask residents whether they would be prepared to pay extra to protect services, including public toilets, grounds maintenance and street cleaning.

Council leader Cllr Tim Taylor said it was important people were given all the facts about the implications of either a "yes" or a "no" vote in a referendum.

He said the level of cuts facing the council in the coming years would mean the loss of all discretionary services, as well as cuts to statutory services - unless additional money could be found.

"We know our Council Tax is too low and if we put it up by 30 per cent we will be back to the national average of local authorities.

"Whatever happens there will have to be a referendum in 2013.

"We will be giving the people of West Somerset the opportunity to decide," Cllr Taylor said.

To stave off the impact of tax rises this year, councillors voted on Wednesday night to take a one-off Government grant of £50,000 in return for freezing its share of the bills for another 12 months.

That means people living in Band B rated properties will again pay West Somerset Council £103.37 of their total £1,090 a year Council Tax bill and residents of Band D homes £132.90 of their £1,402 yearly bills.

The remainder of the bills will be made up from payments made to Somerset County Council, the Devon Fire and Rescue Service and Avon and Somerset Police Authority.

Of those three, the county council will take the lion's share with Band D residents paying it £1,027 of their total bill, while the police will take £168 and the fire service £73.

Cllr Taylor said nothing was set in stone for next year's share of the bills as there were a number of unknowns that would impact on how big or small the percentage increase would have to be.

In particular, it would depend on how much money the council received in grant funding from central Government.

But councillors from all political sides said it was important residents understood just how small the district council's share of the total tax bill actually was and how much money a hypothetical 30 per cent increase would actually be.

The Free Press has calculated that if West Somerset Council did increase its share of the bills by 30 per cent next year the increase would see residents having to pay the following:

* Band A, currently £88.60 a year, would increase by £26.58 a year, or 51p a week, to £115.18.

* Band B, currently £103.37 a year, would increase by £31.01 a year, or 60p a week, to £134.38.

* Band C, currently £118.13 a year, would increase by £35.44 a year, or 68p a week, to £153.57.

* Band D, currently £132.90 a year, would increase by £39.87 a year, or 77p a week, to £172.77.

* Band E, currently £162.43 a year, would increase by £48.73 a year, or 94p a week, to £211.16.

* Band F, currently £191.97 a year, would increase by £57.60 a year, or £1.11 a week, to £249.57.

* Band G, currently £221.50 a year, would increase by £66.45, or £1.28 a week, to £287.95.

* Band H, currently £265.80 a year, would increase by £79.74, or £1.53 a week, to £345.54.

Cllr Keith Ross said he was unconvinced the projected budget gap could be met: "If we're going to be sensible about this we might as well pack up and go home now because £900,000 of savings next year alone is going to be impossible."

Cllr Martin Dewdney said Cllr Ross, like all other members, was fully aware plans were in the pipeline to try and increase Council Tax via a referendum and central Government was still being lobbied for more money.

"I, for one, am not prepared to just give up and go home, maybe you are," finance lead member Cllr Kate Kravis told Cllr Ross.

"I am going to look as what the actual final budget gap is, the implications of that budget gap and how we will meet it.

"Then we will go out to the taxpayers and ask if they would be prepared to pay extra Council Tax through a referendum."

She said she did not want residents to think they would definitely be faced with a 30 per cent increase in the district council's share of bills next year, as a lot could still change in the next 12 months.

Cllr Pete Murphy added: "But at long last this council is saying we should put Council Tax bills up.

"Our history has show we should have done this before."