The average homeowner in Oxford is set to fork out an extra £55 in council tax next year.

The Oxford Mail has calculated those living in an average Band D property in the city would pay about £1,429.47 from April, when the bills for 2007/08 are sent out.

Council tax demands will not be finalised until February next year and will vary depending on where people live, but Oxfordshire County Council has said it will increase its Band D element by an inflation-busting 4.25 per cent, from £1,008.75 to £1,051.62.

And if Oxford City Council increases its precept by two per cent, as expected, and assuming Thames Valley Police raises its element by the same amount as this year - 4.99 per cent - the final bill for an average Oxford home would be about £54 more than this year.

Last night one pensioner, who received a weekly basic state allowance of £84.25, was horrified.

Oxford pensioner's champion Bill Jupp, 75, said: "It's unacceptable. The question for a lot of pensioners this winter is going to be eat or heat.

"It's not only a question of council tax - fuel and water rates are going up so there is no way we are going to meet these kind of demands."

The picture is likely be repeated across the county as district councils increase their precepts.

Earlier this week, the Government revealed the amount of money councils and police forces across the country would be getting in their annual settlement.

For Oxfordshire County Council, the amount was £92.2m - a 2.7 per cent increase on last year.

Tory county councillor Charles Shouler, cabinet member for finance, said: "It is exactly as predicted, which allows us to go on planning for a 4.25 per cent increase in council tax.

"We are working through the process, all the service pressures will be going to the scrutiny committees in a week or so and we will have to decide what gets increased and what does not.

"There will be an increase in expenditure.

"When the Government changed the system last year and introduced their formula, counties in the south east came off badly."

Next year's budget battleground is certain to focus on social services and the amount of money needed for the county's children, adult and elderly service users.

Mr Shouler added: "There are continuing pressures in the costs of social care and that includes children, adults and the elderly.

"And then there are energy cost pressures - street lighting and transport, pressures at the moment rising much faster than the normal rate of inflation."

Oxfordshire Labour group leader Liz Brighouse added: "We will be doing a lot of re-prioritisation to ensure there is more money for older people."