IT'S a puzzle designed to test even the most experienced mathematician - when is three per cent not three per cent?

The riddle has confused council officials at Purbeck District Council, who have just been told they are to get a three per cent increase in their government funding next year.

But this year the council was awarded a total amount of £3,007,000 and it has been told that next year it will get £3,021,000 - and any mathematician can work out that that equals an increase of less than half a percent.

Steven Mackenzie, director of support services at Purbeck District Council, said the government's sums just don't add up.

He said the government had recalculated the amount the district council was awarded this financial year based on the new formula it is using as the basis for next year's calculations.

The recalculations revealed Purbeck would actually have received £2,923,000 under the new formula, so the government has used this as a starting-point and added three per cent to it.

The result is the government claims it has given Purbeck an above-inflation rise of three per cent, but Purbeck is left with just £14,000 extra to maintain services for residents.

Mr Mackenzie said: "I'm very disappointed with our allocation, particularly when politicians put a spin on it.

"Based on these figures and the increases in expenditure that we know about at the moment, we are looking at an increase in our share of the council tax by around 30 per cent.

"The other alternative is to make half a million pounds worth of cuts from our budget of just £4.7 million.

"That means cutting 10 per cent of our budget or raising council tax by 30 per cent.

"We planned for a worst case scenario of a one-and-a-half per cent increase in the government grant, which would have given us an extra £45,000.

"Instead, we've got £14,000."

An increase of 30 per cent would put Purbeck District Council's portion of a Band D council tax bill up from £96.72 a year to £126.00. This is not taking into account Dorset County Council or Dorset Police's portion of the bill and any increases they impose.