PENDLE residents are set to see their council tax bills go up by nearly five per cent - the maximum limit set by the Government.

Last year Pendle Council froze council tax rises, but the authority now wants to increase the levy by 4.95 per cent.

However, Coun David Whipp, said the rise would only add another 40p a week to the bills of people who lived in a Band A property, which make up two thirds of Pendle's homes.

Coun Whipp, executive member for resources, claimed the council had to make the increase after facing a £1million shortfall when the government said it would no longer help pay for the transfer of the authority's housing stock and the government did not give Pendle as big a grant towards its running costs as the authority said it needed.

He added the council, which was now debt free, was putting £750,000 from its coffers to keep the increase down.

Coun Whipp said: "People will continue to benefit from the nil increase we had last year. We were one of only 19 councils in the country to do that.

"We have used some savings and the figure of just under five per cent is as low as we can go without causing problems."

The council's Liberal Democrat executive is to meet on Tuesday when it is recommended to approve the rise.

Increases from the police, fire and county council will have to be added.

Coun Whipp said only 16p in every pound raised went to pay for services provided by Pendle Council, such as rubbish collections and leisure facilities.

He added some of the money would go towards improving rubbish collections, sporting facilities, the parks and five extra police community support officers.

Coun Whipp said: "We want to continue the cleaner, greener, safer theme with the emphasis on sporting facilities."