Income from a shopping centre has allowed Chorley Council to freeze its portion of council tax.

However, bills are still set to rise as Lancashire County Council has approved a 1.99 per cent increase in its share of the tax.

Chorley Council’s budget was agreed last Tuesday night and council tax will be frozen for the second year running.

Councillor Peter Wilson, deputy leader of Chorley Council, said: “We’ve faced a huge cut in our government grant of 13.5 per cent (£879,000) so not only have we been looking at how we can save money and do things more efficiently, it’s important that the council looks at ways of generating more income.

“The best example of this is the purchase of Market Walk. That provides us with an income of £500,000 per year and has helped us to balance the books so we can freeze council tax.”

The authority is still left with the prospect of having to fill a budget deficit of more than £2million up to 2016/17 but despite this the council claimed it is in a position to make investment.

Coun Wilson added: “We have benefited from money through the New Homes Bonus but we could have just used that to cover the budget deficit and not made any investment.

“We haven’t done that, we have continued to be more efficient and generate income which has allowed us to make significant investment, which will benefit people right across the borough.”

Lancashire County Council has agreed its budget, which includes increasing council tax by 1.99 per cent.