DURHAM County Council says residents can expect a council tax increase of about five per cent in April.

The Labour-run authority says it is trying to heed Government calls for low single figure rises.

The county is responsible for major services such as social services and education - this financial year it is spending more than £465m - and its demand makes up the lion's share of council tax bills.

A five per cent increase would mean Band D property owners paying about 80p per week more for county council services.

Until now fire brigade spending has been included in its overall funding but from April the fire authority, which currently gets £19m from the council, will be stripped out of the county council's budget requirement and service precept. Like the police, district and parish councils, it will levy its own demand and appear on bills as a separate item.

As a result, the precept for county council services will be less than that for the current year. For example, someone in a Band D house is currently paying £903.42 but if an exact five per cent increase were levied they would pay £887.58 - although they are sure to face increases from the other authorities.

The council outlined its plans to Local Government Minister Nick Raynsford on Tuesday.

This year's 9.7pc increase in the county's bill was coupled with a policy of directing money to priority services rather than increasing funding across the board.

Council leader Ken Manton said: "That approach enabled us to levy one of the country's lowest increases this year and is allowing us to look realistically at an increase of around five per cent for the next financial year.

"During our talks with the minister we once again pressed for a fundamental change in the way central government funds council services.

"We need a system which is fair and equitable to both the north and south of the country and which dispenses with the need for so-called council tax discounts, cuts in services or big council tax increases."

Some services in Derwentside are already facing drastic cuts, as the district council looks to make savings of £1m in order to keep its council tax rise down to 2.5pc.

Areas affected by cuts include public toilets, Stanley Indoor Bowls Club and the small leisure grants scheme.