THE first clue about whether Darlington residents can expect another large council tax increase next year will be given next week, when Darlington Borough Council receives its annual settlement figure from the Government.

The figure is a key factor in determining the amount levied in council tax.

Residents will be watching anxiously in the coming months as the council calculates next year's bills, following a 12.5 per cent increase in the average bill for the 2001/2 financial year.

The increase came despite budget cuts of £1.2m and was the highest in the North-East and Yorkshire and Humberside region.

The council argued that although it was a sizeable increase, the tax level was still among the lowest in the region.

Budget discussions are expected to take place between now and Christmas, with the council tax figure due to be announced early next year.

At a meeting of the council's resources scrutiny committee today, councillors will receive the authority's half-yearly revenue budget monitoring report.

The report will tell of a projected overspend of £921,000 by the year-end, including £68,000 in education, £598,000 in social services and £187,000 in the development and environmental department.

However, a council spokesman said this was unlikely to have a great effect on the council tax figures, because such an amount accounted for less than one per cent of the authority's budget.

"It will all be put into the budgetary melting pot to see what impact that has, if any," he said.

"By around January, we will see where we are in the next year for budgeting."

Last November, the Government announced the "best ever" Standard Spending Assessment for local authorities on which to base the coming year's council tax figures, as well as the level which will be announced next week.

Council leader John Williams said last year's rise was in response to increased demands for services. He said the tax level was the lowest in the region, and the ninth lowest average out of 354 authorities in the country.