The Government could force West Oxfordshire District Council to back down on a planned 30 per cent increase in its share of the council tax.

Local and Regional Government Minister Nick Raynsford has warned councillors they face capping if they go ahead with the increase -- even though the authority has one of the lowest taxes in the country.

Proposals are to raise the district's tax from £60 a year -- the second lowest in the country, after Breckland in Norfolk -- to £80 for an average band D household.

West Oxfordshire is one of about 30 councils threatened with capping.

Mr Raynsford refused to meet officers and councillors from West Oxfordshire to discuss the situation.

Instead the delegation met the Conservative shadow minister David Curry on Monday.

Council leader Barry Norton said: "We're being penalised for being frugal and shrewd over the years. People could have been paying £180 for several years."

The district's levy is just part of the full council tax bill that householders have to pay. The rest is made up of levies for the county council and Thames Valley Police, which are also going up, and town or parish councils.

After a large rise in many council taxes last year the Government says it wants percentage rises to be in single figures this year.

The council's director of finance Vic Allison said: "The Government gives us £5m and expects us to raise the rest. A tax of £80 at band D will raise just over £3m so we're having to take £2m out of our revenue budgets which are dwindling fast. If we go on like this, in five years we will be broke."

A vote will be taken in the House of Commons before any council is capped.

Mr Raysnford said: "I'm concerned to learn West Oxfordshire may be considering a rise of up to 30 per cent.

"I'm sure council taxpayers will find it hard to understand how such an increase could be justified.

"We have increased our grant by 5.5 per cent. Given this further significant investment in local services and the scope for efficiency improvements, authorities should deliver council tax rises in low single figures."