COUNCIL tax in Manchester will rise by 5.2 per cent - the lowest increase in Greater Manchester and less than half the national average.

The city council agreed a '550m budget for 2003-04 as a nationwide survey showed the true scale of huge local tax increases across Britain.

New figures showed council tax bills were rocketing by an average of four times the rate of inflation to pay for more spending on crime, social services and education.

Council tax is made up of payments to various bodies - the majority goes to the town hall with other shares going to the police, fire and civil defence.

Someone living in a Band A property - worth '40,000 or less at 1991 prices - will pay '737.21 a year from April, a rise of '36.

Tax on houses in band D - '68,001 to '88,000 - will go up from '1,051.79 to '1,105.81.

Council chiefs said they would not be cutting services to keep council tax down. They will implement all extra spending demanded by the government, including '17m for social services and '21m for education.

Council leader Richard Leese said Manchester's Treasury handout for 2003-04 had been "better than we expected".

Claire Nangle, executive member for finance, said: "We promised not to increase council tax or cut services to pay for the Commonwealth Games. We have not." Tweet