People in Norfolk could be facing higher council tax hikes, amid fears the government might give County Hall less money to run services than anticipated.

Norfolk County Council is tackling a £60m funding gap, with £32.5m of potential savings identified and £27.5m yet to find, of which £16m could come from a strategic review which will include job losses.

Opposition councillors fear the gap will widen further amid inflationary pressures, increased demand for services and the government, which provides funding to County Hall, tightening its purse strings.

At a meeting of the Conservative-controlled council's scrutiny committee on Wednesday (October 19) Andrew Jamieson, cabinet member for finance, was asked whether council tax could be increased to help balance the books.

Eastern Daily Press: Council tax bills are set to rise - but the public is being asked how much they might be prepared to payCouncil tax bills are set to rise - but the public is being asked how much they might be prepared to pay (Image: Archant)

The council this year agreed a 2.99pc increase - below the government imposed increase threshold which would have triggered a referendum.

Steve Morphew, chairman of the scrutiny committee and leader of the Labour opposition group, asked whether, if the government raised that threshold, how far the authority would go in putting up council tax.

Eastern Daily Press: Andrew Jamieson, cabinet member for finance at Norfolk County Council. Pic: Norfolk County Council.Andrew Jamieson, cabinet member for finance at Norfolk County Council. Pic: Norfolk County Council. (Image: Norfolk County Council)

Mr Jamieson said it was "not the 1980s" and it was "not a time to take the country back on a path of rolling back the state."

However, he added: "I am not going to give a clear indication of where council tax is going to go.

"But we are fully aware of the cost of living crisis and are going to take all steps to keep it within the bounds of what we already set out in our medium term financial strategy of 2.99pc."

However, the council's finance director Simon George warned, if the local government settlement is "materially worse" than expected and, if the council did have the ability to replace that by increasing council tax, he would recommend putting it up further.

The local government settlement - the amount of money the government gives the council to fund services - is due in December.

Green councillor Jamie Osborn and Ed Maxfield, leader of the Independent group, both said they believed the £60m gap would grow.

Eastern Daily Press: Prime minister Liz TrussPrime minister Liz Truss (Image: PA Wire/PA Images)

Council leader Andrew Proctor recently wrote to prime minister Liz Truss urging her to help to avoid "damaging" council tax rises, but has yet to get a response.