LANCASHIRE County Council is set to finalise its council tax proposals at a meeting this week.

County Hall finance chiefs have already promised a rise of no more than five per cent after being given extra money by the Government.

Lancashire was given £728million by the Office of the Deputy Prime Minister and an extra £5.5million by the Chancellor Gordon Brown.

County councillor Tony Martin, Lancashire's cabinet member for resources, said he was expecting to have the smallest increase of any county authority in the country. The spending plans are set to be rubber-stamped at a full meeting of Lancashire County Council on Thursday.

The Office of the Deputy Minister has warned councils that large increases will not be tolerated and has threatened to re-introduce capping.

Burnley, Pendle and Rossendale councils are set to finalise their budgets at the end of the month while Blackburn with Darwen Council meets on March 1 to set its tax.

Ribble Valley Borough Council has already agreed a 2.9 per cent increase, which it claims will be one of the lowest rises nationally.

Police and fire authority precepts, which are added to bills, are set to be finalised by the end of the month.