A COUNCIL capped by the Government for trying to raise its council tax level too high is looking for a 2.5 per cent rise this year.

Hambleton District Council is proposing the modest increase which will keep it amongst the lowest taxing authorities in the UK for 2010-11.

The move comes five years after the district authority was capped by the Government for trying to impose a £12 tax increase.

The Government’s guidelines this year state that taxing authorities should not breach a three per cent ceiling.

Under the current proposals the 2.5 per cent rise equates to a band D home rising from £87.30 to £89.48 meaning an extra £2.18 a year.

The idea will now go before a future full meeting of the council to see if it is adopted.

Councillor Arthur Barker, council leader, said: "No-one wants to raise council tax and in the light of things this is a low level and it should be seen in that contest.

Councillor John Coulson said: "We’re doing it to keep the services to the standard that they are at."

A public consultation was held between the council and locals before the figure was arrived at.