COUNTY Hall last night agreed a 4.9per cent rise in its council tax demand and cuts to vital services, including rural libraries and school uniform grants for pupils.

Councillors voted to accept a Lancashire County Council budget of £601million, which will see band D homes having to pay £996.85 for the financial year 2006/7. Last year, the council agreed a rise of just over three per cent.

Households' bills will be decided when the county council precept is added to those from district councils, parish councils, and Lancashire police and fire authorities, some of which have yet to be decided.

The leading Labour group also pushed through plans to close nine rural libraries, and axe school uniform grants, but compromised on proposals to scrap cooked meals on wheels and replace them with frozen meals.

Pensioners will now have a choice of either frozen, or hot meals.

The budget was criticised by opposition councillors and community representatives.

Despite a 3.1per cent rise in the money it received from the government, the ruling Labour group claimed it did not have enough money to maintain services.

Coun Ann Brown, cabinet member for resources and performance, said: "The cabinet has had to make some uncomfortable decisions on budget priorities.

"The 4.9per cent increase is higher than we would like, and I recognise the difficulties in raising the money for bills.

"I believe the budget and the tax represents the best compromise."