Councils are preparing to debate possible council tax rises

The figures from November 2003 said Devon County Council would only get a 4.2% increase in grant, Plymouth City Council a 3.7% increase and Torbay Council 5.9%.

Devon will now receive a 5.5% increase on the 2003 grant, Plymouth a 4.2% rise and Torbay 6.9% more.

The councils will now use these figures to inform their budget debates. They will then need to set their rates of council tax by the end of February.

Funding problems

Devon County Council has maintained for some years that it gets less as a shire county than many of the metropolitan councils in the north of England.

Now its grant will rise to more than �378m under the increase.

The council was also awarded an extra �4.3m by Gordon Brown in December specifically to keep down any council tax increases in 2004.

An unprecedented rise of 17.9% in council tax rates by Devon County Council in 2003 was one of the highest in England and led to widespread protests by pensioners.

Devon County Council leader Brian Greenslade said of the increase: "Ministers have clearly listened to the council's case for a fair deal for the county's public's services.

"I believe the hard work done both publicly and behind the scenes by the county council to ensure ministers, MPs and senior civil servants are fully aware of the severe funding problems faced in Devon has paid off."