Hyndburn Council is proposing to raise its portion of resident's council tax bills by two per cent next year.

This would add £3.37 a year to its current annual levy of £173.76 for a band A terraced house for 12 months from April 1.

It would increase its current tax for borough services of £260.64 by £5.21 in 2024/25

Hyndburn's portion of borough residents' council tax bills is small compared to those of Lancashire County Council - which provides major services such as education, children's and adult social care, and highways - and the police and fire and rescue services.

Last year the borough froze its portion of the council tax making the overall bill - including the levies for Lancashire County Council, police and fire services - at £1,446.05 for Band A properties and £2,169.07 for Band D ones.

The proposed increase was revealed in report to Wednesday's meeting of Hyndburn Cabinet by acting leader and finance boss Cllr Peter Britcliffe, who also revealed a forecast budget underspend of £478,000 for 2023/24.

Lancashire police and crime commissioner Andrew Snowden is seeking to raise the police precept for 2024/25 by 4.75 per cent - £11.95 extra for a Band D property.

Cllr Britcliffe's report said: "There is a forecast increase of two per cent on council tax.

"Currently the council has the option to raise the council's element of council tax by a maximum of 2.99 per cent or £5 whichever is highest.

"Raising council tax to the maximum will be an option that will need to be considered in the next budget setting process.

"Council tax currently provides approximately 40 per cent of the council's required funding.

"Currently inflation is running at 3.9 per cent. This has fallen significantly from the inflation rate of 6.7 per cent reported last quarter.

"It is hoped that this fall should enable the council to contain costs within the current budgeted resources, however the future outlook for inflation is uncertain."

Cllr Britcliffe said after the meeting: "Due to significant inflationary pressures we need to increase council tax by two per cent. It will still be below the rate on inflation."

Hyndburn Council's Labour group leader Cllr Munsif Dad said: "Amidst a continued cost-of-living crisis, Hyndburn residents deserve relief, especially since the council is currently showing a budget surplus for this council tax year.

"We believe serious thought needs to be given regarding a rise in council tax.

"Let's ensure we don’t increase the burden on Hyndburn households to a level that places further strain on them, pushing more into poverty and additional financial stress."