FAMILIES in Southend could face a 3.9 per cent rise in council tax in each of the next three years.

Martin Hone, head of finance at Southend Council, revealed his prediction as he told councillors income from Government grants, council tax, fees and charges for services is likely to fall.

Council officers are preparing their budgets for next year and a final decision on the council tax rise will be made on February 25, although there is a Government limit of 5 per cent.

Mr Hone said: “This budget strategy has been set in uncertain economic conditions and at the moment there is no prospect of certainty returning.

“The economic downturn will continue to increase demand for services, and place pressure on budgets, at the same time as income from Government grants, council tax,fees and charges are likely to fall.”

Tory council leader, Nigel Holdcroft said his aim is to get the council “lean and mean” as pundits predict a decade of austerity in an effort to clear the national debt.

He added: “Everyone in the public sector fully appreciates that whatever government we have in place, the next three to five years are going to be very tight.

“We are going to see real reductions in funding that will result in challenges. How we cope with this in terms of services is uncertain.

“We have to look at previous recessions where the public sector has tended to move into recession as the private sector moves out.

“It will be difficult, but we are fully aware of it and are planning ahead.”

Mr Holdcroft said the council would have to make savings, but hoped cuts to frontline services could be avoided.

He added: “It is not so much next year, it’s the following two to three years we expect to have a more dramatic push on finances.

“At the moment, it’s about getting the organisation as lean and mean now so we are ready to deal with the challenges ahead.”

Mr Hone said there was a prediction of a 1 per cent pay award for staff over the next three years. He also said fees and charges for council services would increase by £800,000 each year up to 2011-12.

Borrowing of £10million in each of the next three years will be required to support services He further predicts the council’s contingency fund would need to be increased by £500,000 each year.