BUCKINGHAMSHIRE County Council today announced a 3.7 per cent increase in council tax – a reduction from the expected 3.9 per cent rise.

This is the equivalent of £37.70 a year for a band D property, or 72 pence per week.

The annual tax payment for the council's portion of the charge would be £1,056.61 for a B and D property. This year it was £1,018.91.

Council leader David Shakespeare said: "Given the funding issues we face I think we have done very well to keep the council tax increase this low while protecting frontline services for the public.

"We are facing a really major shortfall by the financial year 2010/11 and have gone through a rigorous process to come to this result. We are also taking a very detailed look at how the council works to avoid doing this sort of salami slicing exercise each year. We are looking at ways to improve the way we work in every single area to make long-term savings.

"As always, we committed to providing excellent, value for money services while keeping our council tax rate as low as we possibly can."

The government grant for next year will be £58.7million and the proposed net council revenue budget is £282.4million.

The council says its draft budget has identified £9million of savings through working more efficiently, a form of saving required by government.