CITY leaders intend to increase York's council tax by 4.75 per cent - more than inflation, but less than first feared.

The ruling Liberal Democrats on City of York Council announced the planned rise, as they set out their proposed budget for 2008/09.

Officers had advised the council to go for the maximum possible rise, and a 4.95 per cent increase was anticipated.

But deputy council leader Ceredig Jamieson-Ball said there were fears that the Government may cap councils that went for the higher increase.

He said: "The 4.75 felt safer than 4.95, but it also has less overall impact on the amount local residents have to pay."

Leader Steve Galloway said keeping council tax down was residents' number one priority.

He hailed the consultation that had gone into the budget, and said it was the most "well-informed" the council had ever produced.