COUNCIL tax bills for the Hambleton area could increase by more than three times the Government's recommended maximum this year.

Hambleton District Council's precept could rise by 17.6 per cent - or from £68 to £80 for a Band D property - even though the general threshold for increases is only five per cent. The council said the increase could lead to a cap from the Government.

But as the council tax proposed by the Government as part of the grant settlement is £181, officials say it amounts to an effective rebate of £101 for a Band D property.

"The Government has made clear statements that it will use its capping powers if council tax rises are excessive and it has set an arbitrary target of five per cent," said Hambleton's director of resources, Phillip Morton.

"However, it has not stated that councils with increases over five per cent will necessarily be regarded as excessive in all cases." He said that last year, the district had the lowest council tax of all the shire districts and would remain in the bottom five even after such a rise.

"It is difficult to perceive how Hambleton could be capped with such a small cash increase," he said

The district council will meet to discuss the budget next week. The figure it decides will be added to the county council, police and fire service precepts.