FIRE service bosses are to submit "a robust case" to the Government for next year's budget to not be restricted.

County Durham and Darlington Fire Authority, which set its share of council tax this year, has been told its rise will be capped next year when government grants are awarded.

Officials were left with a dilemma after agreeing a budget of about £29m for the coming year, but only receiving a central grant of £13.5m.

The authority later trimmed its budget to £26.8m and said it would have to meet the shortfall with a substantial rise in council tax.

The alternative, the fire authority was warned, would have been firefighter job losses and drastic cuts in services.

It was initially feared that more than 100 jobs could be axed because of the budget shortfall.

But the fire authority decided against that course of action and set its precept at £74.25 a year for council tax band D.

The Office of the Deputy Prime Minister took action over the increase by warning that a cap could be applied for 2005 to 2006.

The authority is now drawing up its appeal to the Government against the restrictions and will submit it within the next three weeks.

Senior officials fear that front-line services could be badly affected if any reduction in funding is imposed.

Finances are already stretched by the costs of implementing a new pay structure and an expected rise in the number of officers retiring.

A report from Chief Fire Officer George Herbert and treasurer Stuart Crowe says: "Work is well under way in order to provide a robust case for the Minister's consideration."

A memo has also been sent to all staff in an attempt to allay fears about the consequences of the financial crisis.

The fire authority is due to meet in Durham on Thursday to consider the matter.