PEOPLE living in Durham may be asked to pay only 2.75 per cent more for city council services from April.

The ruling Lib Dems have announced plans to levy the lowest percentage rises in the council's share of the council tax in recent years.

If agreed, the lowest Band A charge (excluding county council, fire, police or parish spending) of £115 will increase by about £3.16.

But the overall bill that people pay is considerably more than that and the final figure will largely depend on Labour-run Durham County Council's spending plans.

In May, people will go to the polls to vote in county council elections and probably a General Election.

The Lib Dems believe Durham is a winnable-seat after their seizure of the city council from Labour in 2003 and success in recent years in winning county council divisions in the city.

Carol Woods, city cabinet member for finance and the party's parliamentary candidate, said the percentage increase was the lowest since 1998/99. She said it resulted from good management and careful financial control.

"The city council has made efficiency savings and is committed to delivering value-for-money services for its residents," she said.

The council is undergoing restructuring to cut costs and meet the recommendations of its Comprehensive Performance Assessment.

Last year's rise in the city council share of the bill was 6.8 per cent. It was 3.5 per cent in 2003, the year Labour lost power, and 6.1 per cent in 2001, the year of the last General Election. The Government says it is giving councils overall a 6.3 per cent grant increase and that councils introducing council tax rises above five per cent face capping.

The Government's measure of inflation stands at 1.6 per cent, with the Retail Price Index at 3.5 per cent