Council tax in north Oxfordshire will rise this year but the increase will be much less than last year's 16.2 per cent increase.

Early estimates from three of the four bodies whose charges make up the total bill in Banbury put the overall increase this year at between five and nine per cent.

A nine per cent increase would add £109 to average Band D bills in April. A five per cent rise would put up bills by £63. Cherwell District Council will limit its rise to six per cent and Banbury Town Council is forecasting a rise of not more than five per cent. The county council is looking at an increase of between five and eight per cent, while Thames Valley Police are not yet able to give a figure.

Last year Cherwell raised its portion of the tax bill by 30 per cent, which meant a rise from £77 to £100 for Band D homes.

The county upped its charge by 13.4 per cent (from £767 to £870) and Banbury Town Council's share went up 5.2 per cent (from £95 to £100). The police share rose by 45 per cent (from £73 to £106).

The likely rises will mean a Band D bill of about £1,239 to £1,288. All figures were for Band D households.

This year, in a three-year financial forecast document, Cherwell has indicated a six percent rise for each of the next three years - taking its precept for 2004/2005 to £106.

David Knight, Cherwell's assistant district treasurer, said: "We are very aware of the need to keep council tax rises to a minimum."

Banbury Town Council has received an officer's recommendation of a five percent increase to take care of the extra services now under the control of the council. But Cllr Kieron Mallon said the council would be looking to trim that to around three percent.

Keith Mitchell, leader of the county council, would not be drawn on a precise increase.

He said: "Members of the public are being consulted on Saturday (January 10) on a variety of options, so it would be wrong to be too precise before then.

"We need to keep the figure as low as possible, but also need to improve services. We started off with a ball park nine percent increase but the government has put in some extra cash, and we will be able to settle at lower than nine percent."

The five percent overall forecast allows for a police precept rise of 10 percent, and the nine percent figure allows for a 30 percent police hike.