Devon County Council officials have examined the Chancellor's Spending Review statement to try to calculate the impact on council tax payers.

Council leaders reckon there will be above-inflation rises for three years, with a rise of at least 6.7% next year.

There are also shortfalls in government grant meaning the need for several million pounds of efficiency savings.

I fear one way or another there will be a large price to pay Devon County Council leader Brian Greenslade

That could mean cutbacks in highways services and more job losses.

Council leader Cllr Brian Greenslade said: "Either Devon people will have to pay for an above inflation rise in council tax or they will have to suffer large cuts in vital public services.

"Neither does it look like any relief can be expected by government action to reform council tax as it is clear the government are dragging their feet on any change this side of the general election.

"For the thousands of Devonians on low or fixed incomes I fear one way or another there will be a large price to pay."

Albert Venison of the Devon Pensioners Action Forum said of the proposed rise: "It's too much. We won't accept it, and we'll have to turn round again and say we can't afford it.

"It has to be always at level of inflation. We can only go on pension rises, so why don't the councils only put their rises up at the rate of inflation?"