DISTRICT councillors in Hambleton have agree not to increase their share of the council tax this year.

They have agreed a rise of 2.5 per cent (£2.24) a year for a Band D property – but the increase will be met by central government which, for the second year, will fund rises set below 2.5 per cent, effectively freezing rates for taxpayers.

Without the freeze, Hambleton District Council’s element of the council tax would be £91.72 a year for a Band D property – but residents will be charged £89.48.

Council leader Neville Huxtable said it meant Hambleton remained one of the lowest charging authorities in the country.

Over the two years to 2013 the district council will lose £1.66m – almost 29 per cent – in its Government grant, with the settlements for the remaining two years of the plan still unknown.

Coun Huxtable said: “We have made some serious decisions to meet the loss in government grant but we are rising to the challenge, bringing in massive savings through shared work with Richmondshire District Council, efficiencies and by working more closely with parish councils and other partners.”

Hambleton is the collecting agency for council tax for North Yorkshire County Council, the police authority, the fire and rescue service and parish precepts.

With all the charges together an average Band D property will receive a bill for £1,413.61 in the next financial year.