Herefordshire Council is planning to raise its Council Tax demand by 10 per cent.

The move would mean an average Band D bill rising from £925 to £972. Added to that will be demands from the police, fire brigade and town or parish councils.

The council's cabinet was meeting yesterday (Thursday) to discuss next year's budget, ahead of the bill being set by full council on March 5.

Deputy Prime Minister John Prescott has warned that council's setting a rise higher than five per cent could have their budgets capped. This would mean the council being forced to cut its budget.

However, council chief executive Neil Pringle said: "I think there are extenuating circumstances."

He said last year the council used reserves to cut a rise from 17.4 per cent to 14.5 per cent, which had led to budget implications this year.