COUNCIL tax bills in East Lancashire could rise by as little as three per cent after inflation-busting grant increases from the government.

Ministers have told councillors there is no excuse for large rises in council tax in April -- and warned they will cap any authority planning a rise of more than five per cent.

Finance officers across the area have begun to work out how much they need to charge.

Rural Ribble Valley has the largest increase of any Lancashire council, a 7.8per cent rise and will receive £3.4million, up from £3.2million this year.

Hyndburn will get a 7.4per cent increase, so will have £9.204million to spend, compared with £8.571million this year.

Blackburn with Darwen's annual allocation has gone up from £59million to £61.358million, a rise of 3.4per cent.

Coun John Milburn, executive member for resources, said: "The devil will be in the detail but it is more than we expected.

"It's good news but our job now is to keep council tax rises as close to three per cent as possible."

Lancashire County Council will get £222.149million, 3.1per cent up from £215.450million.

Burnley's handout rises from 10.8m to 11.3million, up 4.8per cent, the same rise enjoyed by Chorley, which will get £7.96million.

Rossendale's grant goes up by four per cent, from £5.6million to £5.9million.

Lancashire Police --likely to be in its last year before the Government merges it with neighbouring forces -- will get £187.1million, up 3.1per cent from £181.3million,

Lancashire Fire and Rescue will receive a 3.6per cent increase from £30.034million to £31.12million.