MALMESBURY Town Council has acknowledged taxpayers will be "hit hard" by a rise in next year's precept - mainly because of the rising cost of the town hall refurbishment.

An increase of more than ten per cent was agreed by the policy and resources committee last week.

The budget of more than £300,000 will go before the full council for ratification in the New Year.

Owners of a Band D property will have to pay £158 a year to the town council, if the increase is approved. At the moment they pay £142.15.

Last year's precept rose by 7.5 per cent and 2005 saw it nearly double. The rise has been blamed on the town hall facelift.

It has already borrowed £500,000 from the Public Works Loans Board and has agreed to take out another £150,000.

Committee chairman Charles Vernon said: "We are not very happy with it, but we cannot see any other way of making the books balance."

Coun Vernon said rising staff costs and pension contributions also forced the increase.

"However, those really pale a little bit into insignificance compared to the additional costs associated with the town hall," he said.

"We haven't drawn out the extra £150,000 yet, but we will be doing so within the next month and, of course, we have to pay interest on that, so it is a big item."

To help with the funding and to stop the entire burden falling on the taxpayers, the council has raised hire prices for the hall.

Coun Vernon said he was "concerned" about the effect it could have on the number of groups using it. He said the building work was also causing problems.

"Our users are putting up with a great deal of discomfort at the moment, but we hope in six months they will be coming into a nice, welcoming environment," he said.

Hundreds of new houses are currently being built in Malmesbury and Coun Vernon said, once they are occupied, that should help spread the tax burden.

"Certainly, our taxpayers have been hit pretty hard and we don't want to continue that," he said. "We hope after next year the worst will be over and we will also have a few more taxpayers in the town."

The problem is exacerbated by some people in Malmesbury falling under the category of the St Paul Without Parish, rather than the town itself, where they pay a significantly lower sum.

This includes the new development at Cowbridge.

Coun Vernon said this was something he wanted the new unitary authority to look into when it is formed.

"It is a little bit ridiculous that quite a large proportion of the town isn't officially a part of it," he said.