SAVINGS of more than £380,000 through sharing services with South Hams District Council has helped West Devon Borough Council set the lowest council tax increase in seven years.

The new, lower council tax increase has been unanimously agreed by the borough, to help people out of the economic downturn.

The council is raising its share of the council tax by 2.59%, an extra £4.85 a year — or nine pence a week — for the average Band D property. The rise means that the average West Devon household will, from this April, pay £192.15 for their services from the borough.

It is the lowest council tax increase for seven years and is below the current rate of inflation of 3.5%.

West Devon councillors were told last week that despite budget pressures of just over £900,000, the borough had still managed to reduce overheads and find savings of £700,000 with frontline services being protected from any cuts.

Last year the council had to use around £400,000 of its savings to balance the budget, as its investment income dropped considerably due to the recession. In 2007/08 the council had an annual investment income of £700,000, yet this amount has dropped to just over £100,000 this financial year.

The rest of the council tax bill is made up of charges from Devon County Council, parish or town councils and the fire and police authorities. A 1% increase in council tax raises just £38,000 for the borough council.

In the next year, residents and businesses will benefit from a number of initiatives from the Council including:

l Free bus travel from 9am for the over 60s and the disabled — the scheme has been extended to include carers/companions too

l A new waste service which will mean residents can recycle more materials than ever before — including all types of plastic bottles —and food and garden waste collections are to be extended across the borough

l Delivering 172 new affordable homes (the largest number in Devon)

l An innovative service for council tax collections and benefit payments, where customers are visited in their own homes to help them complete benefit applications straight into a computer

l Further extension to the rural outreach initiative, West Devon Connect. These events bring together many different agencies and organisations into a local venue, taking public services right into the Borough's more rural communities.

In addition, the council will spend more than £800,000 on a wide range of projects to benefit the community. This includes £290,000 on grants to make homes more convenient for the disabled, £300,000 on providing affordable homes for local people and £180,000 on village hall and community project grants will also be available.

West Devon is already the smallest staffed district authority in mainland England with 135 full time equivalent employees.

Cllr Margaret Garton, chairman of the borough's strategies and resources committee, said: 'We continually strive to look for ways and means, either by working in partnership or looking for innovation, to reduce our overheads and give the public the services they want.

'Strong finances built up over past years and new ways of working have enabled us to keep the council tax increase down to 2.59%. This is a budget that is designed to help our residents and businesses during these hard times.'

Residents struggling to pay their council tax can call the council for help on 01822 618800.