Herefordshire Council has to slash another £1 million from its cash-strapped services to keep this year's council tax rise below a double figure percentage.

But councillors were warned that even the 8.9% - or £959.53 at Band D - increase they approved last Friday might still not be enough to keep the council from being capped by Whitehall.

The rise reaches 10% with Police, fire service and individual parish precepts added. That takes the county's average Band D over £1,000 for the first time.

There was no repeat of last year's unprecedented four rounds of voting to set the rise at Hereford Shirehall. At the first - and only - ballot 39 members voted in favour and 15 abstained. None voted against.

Council leader Councillor Roger Phillips said that Whitehall had warned of the 10.4% - £972 at Band D - rise originally agreed by cabinet being capped.

Capping, said Coun Phillips, was a risk the council could not run.

"Having our increase limited to 5-7% would have decimated services," he said.

Liberal Democrat group leader Councillor Terry James said a cut to 8.9% might still be too high to win Government approval when the final total went above 10%.

Labour group leader Chris Chappell said his members supported the rise with 'some reluctance'.

The county, he said, was paying the price for past council tax levels being kept 'artificially low'.

Coun Phillips told members that cutting the rise to 8.9%, agreed by cabinet at a special meeting the day before, meant slashing around £1 million from service budgets, including investment in updated information technology.

Spending commitments to social care and education, two key service areas that soak up 70% of the annual budget, would be maintained, he said.

l Herefordshire's council tax and precepts for a Band D property in 2004/2005 are: Herefordshire Council's charge - £959.53. Fire Service precept - £60.21. Police precept - £137.69. Average parish charge - £27.82. Total Band D bill - £1,185.25.