Council taxes could be going up by another 10% in Wales next year, according to a report to the National Assembly.

The report said the Treasury has "pencilled in" a further 10% rise for 2001-2002.

Assembly Local Government Secretary, Peter Law said Wales was different and agreed that Welsh local government clearly needed more money.

Mr Law promised to lobby Assembly Finance Secretary Edwina Hart for more cash, but reminded committee members that the Assembly itself has limited funds.

The proposed rise has been described as "an unnecessary burden" and a "backdoor tax" by the Assembly Liberal Democrat spokesman on local Government, Peter Black.

He is calling on the assembly to limit tax rises to 5% next year.

'Doubled'

The report to Wednesday's meeting of the local government committee said the assembly must assess whether the rise is "manageable".

It also highlighted that council tax levels have increased by twice as much in Wales as England every year for the past seven years.

The paper said that since 1993 the average band D payment in Wales has more than doubled.

Over the same period council tax in the equivalent band for England has risen by less than 50%.

Angry electors

The tax levels are still lower here than in England but Wales is catching up fast.

In 1993 the average Welsh band D payment was �328, two thirds of the English level of �505.

Now it's �669, just 11% below England's equivalent council tax figure of �753.

Councillors in Denbighshire were lobbied last month by electors angry at a 13% hike in council tax.

They said they should not have to pay for the financial decisions taken by Denbighshire's predecessor council, which left it with debts of more than �7m.

In Scotland, MSP Tommy Sheridan has called for the council tax system to be scrapped, because it is unfair on the poor.