RESIDENTS in Northwich and Winsford are facing one of the largest increases in Council Tax in Cheshire.

At a meeting, on Thursday, Vale Royal Borough Council voted through a seven per cent increase for the next financial year - more than three times the current rate of inflation.

It means householders living in a band D property in Vale Royal will now be forced to pay an increase of £7.23, to around £110.57 a month.

Bob Mather, leader of the council, said the council did not want to impose such a large increase in council tax payments, despite rejecting the possibility of either a six or 6.5 per cent increase instead.

But he added that it was necessary to maintain public services and allow big changes to take place next year, including the transfer of housing stock to a new housing company.

"The council has also been hit by the fall in interest rates as it depends on its £20 million investments to generate vital income," he said.

The total rate bill, which includes Cheshire County Council's precept of £781.43 and the Police Authority's £64.66, means an increase of £56.23 more than last year for band D households.

But Keith Musgrave, Conservative group leader of the borough council, said the rise was 2.5 per cent above the guideline figure put forward by the Government as part of their low inflation policy.

"The Conservative Group proposed an increase of 4.5 per cent in line with the Government guidelines, and suggested that the service directorates re-examine their budget and identify additional savings in expenditure or an increase in income," he said.

Pending pay rises at the borough council have been budgeted for at 2.5 per cent but are likely to be in excess of three per cent.