On the day that the chancellor is set to deliver his pre-budget report, it's been announced that Test Valley Borough Council has another huge gap in their finances.

Savings of nearly £1 million will need to be found next year and they've said they'll face some difficult choices.

In January, Andover Sound revealed that the council had a £2 million gap in their budget and would need to shed staff to plug it.

The situation isn't quite that bad this time but the £856,000 deficit is a big concern.

It means car parking could cost us more - long-term prices will stay the same but short-term's set to go up.

Meanwhile Borough Councillors will see a drop in their allowances of 1.4%.

Council Leader, Councillor Ian Carr, says:  "There's no doubt that we continue to face major financial challenges.  We must constantly review the impact of the economic climate on our plans and proposals.  The Local Government Finance Settlement is expected to be remain as proposed in 2008, but this won't be confirmed until January, which brings a very unwelcome degree of uncertainty.  

"New pressures have also arisen, such as the reduction in anticipated income from Planning Application fees, Building Control income, Local Strategic Partnership partner contributions, pest control treatments and liquor licences.

"But we haven't increased parking charges since 2008 and this year we will aim to keep increases to short-term parking charges to a minimum, with long-term parking charges unchanged.  It will still be cheaper to park in Test Valley than in many neighbouring areas.

The Council are proposing an 80p cost to leave a car for an hour, with charges for 4 hours going up by 20p to £2.60.

Councillor Carr also says they've taken the decision to cut the amount of allowances that can be given to representatives: "While contributions towards the cost of being a Councillor are essential to be sure that as many people as possible can have the option take on the role, we have concluded that [reducing allowances] is the right step in this climate."

The Cabinet will get copies of the revised budget report at a meeting on December 16th, with the final update being given in February, before it has has to be recommended by the full Council.

The council relies heavily on investment income and with interest rates staying low it's set to be a testing 2010 for Test Valley.

What's your reaction to news that parking could go up in price? Is it right that councillor's allowances could come down. Leave your thoughts below.