WYRE residents face the lowest council tax increase on the Fylde coast and the second lowest in Lancashire.

The cabinet committee agreed to recommend the authority's proposed council tax increase of 2.5 per cent – equivalent to £4.39 per year or eight pence per week for a Band D property.

Councillors gathered at Poulton's Civic Centre yesterday evening to approve the budget requirement for the year – a total of £17.7m.

Coun Peter Gibson, Wyre Council deputy leader, said: "Yet again we have a balanced budget.

"We have not cut anything from the budget or cut services.

"When you hear of other councils with much bigger council tax rises and severe cuts you realise howwell this council is run.

"I believe the council tax for next year at £180.16 is a responsible balance between the financial needs of the council and the Government's expectations of an increase that represents a 16- year low.

"The proposed increase of 2.5 per cent is belowthe most recent consumer price index of 2.9 per cent.

"This is a responsible budget that recognises priorities at both national and local levels.

We are bracing ourselves for 2011 and beyond but we are in the best possible position for the financial tsunami which could engulf all local authorities in the coming years."

The budget report also details changes to manpower due to service transfer to Lancashire County Council, service restructures and the ending of externally grant funded.

Last year's budget included 412 full-time council staff while in 2010/11 it has made provision for 394.

While the council will suffer from 'floor damping' yet again this year – which means a £350,774 government grant being withheld from Wyre in 2010/11 to help other authorities – financial officers are confident of the authority's financial position.

But they also say they are aware of the difficultiesmay arise for all authorities in the future.

Philippa Davies, financial director, said: "It seems like the calm before the storm and all we can do is prepare ourselves. We will do our utmost to make sure our finances are in the best shape."

At the end of the meeting, praise was given to Coun Russ Forsyth, leader of the council, who is due to step down next month.

Coun Gibson, who has been nominated for the leadership, said: "This council is in a lot better position than before thanks to the guidance and wisdom of Coun Forsyth."

Wyre's budget will be formally ratified at a full council meeting on March 4.