DURHAM City Council is likely to increase its share of the council tax by just under the rate of inflation.

The Liberal Democrat-controlled authority's cabinet is expected to agree a 2.3 per cent rise next week, which would add £2.71 to the band A bill of £118. Last year's rise was 2.75 per cent and it was 6.8 per cent the year before.

But the total people that will pay from April will depend on rises levied by the county council - which takes the lion's share of the council tax and is considering an inflation-busting 4.6 per cent rise - the police and fire authorities and parish councils.

The council says the increase is the lowest for years and that it is putting money into key services such as increased grass-cutting, licensing - the council now deals with pub licensing issues - off-street parking and street cleaning.

It is also providing £400,000 for free concessionary bus travel, in addition to the grant given by the Government.

A council spokeswoman said: "This is in the face of losing substantial income from car parking charges and time-limited grants from other bodies, such as the Single Regeneration Budgets, both resulting from decisions taken some years ago.

"The city will continue to employ several staff in community development who previously worked on these schemes.''

Bob Wynn, cabinet member for finance, said: "I am pleased that we're able to propose a council tax increase of only 2.3 per cent. This reflects the effective planning and good management of the council's resources in recent years.

"Residents will see that we have listened to their views and focused more funds towards the services they saw as important in last year's consultation on council tax. We have also kept council tax increases in line with inflation, which we feel is really important nowadays, and we aim to continue to do so in future years.''

The council is consulting its Viewpoint Panel, made up of 300 residents, and businesses on its spending and tax plans.

A questionnaire is on website www.durhamcity.gov.uk under the section council and democracy.