SOUTH Shropshire District Council forecast the lowest rise in its portion of the council tax bill since the late 1990s.

It pledged that next year's rise will be no more than 5% but it could end up as just under 4%, once detailed budgeting is finalised by mid-February.

A 4% rise is equivalent to just under £7.20 in the annual bill for a typical band D tax payer.

The county council in Shrewsbury will fix the final increase on the total bill.

District budgeting received an unexpected boost last week when the Government said it would provide an extra £138,000 to help bridge the gap between spending and income.

The district council will meet the rest from reserves.

Council leader Heather Kidd said: "This will allow us to manage our way out of a deficit in a calm and ordered way."

In recent years the Government has piled an increasing burden on local authorities while funding less and less of the final total.

In 2000/01 it funded 62% of the district council's net budget. Next year it will contribute only 48%.

"That is a massive 14% shift in the tax burden from the Government to local council tax payers," Coun Kidd complained.