RESIDENTS are likely to find themselves paying 3.8 per cent more in council tax from next month.
Hyndburn Council's own share of the bill is set to rise by 8.2 per cent, which will be ratified by a meeting of the full council on Wednesday.
The county council increase has been pegged at 3.5 per cent while the Police Authority has imposed a five per cent precept.
Hyndburn Council leader Peter Britcliffe told a meeting of the Cabinet: "The total rise proposed is well within the Government's recommended level of five per cent.
"Since most houses in Hyndburn are in Band A, which pays the lowest level of tax, it would mean an increase of only 19p a week in our share of the bill or around £32 per year overall.
"We have to pay extra costs but the Government has only given us £400,000 to meet them.
"We are in a difficult situation since on the one hand we are forced to put council tax up but on the other hand the Government says we can't put it up by more than five per cent. What does the Government want us to do?
"We are working hard to make sure the council tax is kept as low as possible."
Council bosses have also sent out a reassuring messsage that its finances are in good shape after it was announced in December 2003 that the borough faced a £1.8M overspend.
Since then, finance chiefs say, the figure has been brought down to a predicted overspend of £162,000.
Councillor John Griffiths said: "The council's finances have been much improved and great strides have been made to achieve this."