Money withheld by the government has pushed the rise over inflation

South Gloucestershire Cabinet unveiled its draft budget of �236.3m at a meeting on Tuesday.

This is an increase of �15.3m and the government has requested that �6.7m of this extra money is to be spent on education.

Leader of the council, Cllr Neil Halsall, said: "The council has worked very hard to keep council tax rises to a minimum.

"However, the government has withheld �4.3m of the funding that it says the council requires.

"Had South Gloucestershire received its full grant then the council tax increase could probably have been kept to below inflation."

The proposed 6.8% increase will mean annual council tax for a band C property will rise by �60.67 and a band D property by �68.25 - effective from 1 April 2004.

The budget will not be set until February and between now and then South Gloucestershire Council will be consulting local people about the proposals.