Banbury Town Council wants to ease the burden of council tax by reducing its share of bills by ten per cent.

Early estimates indicate that, from April, the average band D rate in the town could be just more than £1,000, compared with £936 in the current year.

Residents in north Oxfordshire villages could face slightly bigger percentage increases, but their total bills will remain lower than town residents.

Revenue from council tax is shared between Oxfordshire County Council, Cherwell District Council, town or parish councils, and Thames Valley Police.

The county council, which receives the majority of the money, has indicated it will increase its charge by ten per cent rise this year. Neither the district council nor the police have finalised their budgets yet.

However, the town council plans to buck the trend by reducing its demand by about £10 a year.

In 2001, the council kept its charge just below £100 for band D properties, at the same level it charged residents in 2000.

In previous years, the town council has followed the lead of the district council in setting its precept. However, with much lower overheads than the district council, the town council hopes to cut its charge to less than £90 when it makes its decision on February 28.

On Monday, the district council executive warned services may be cut to keep a rise in its share of council tax below six per cent.

Last year, the council increased its demand by 20 per cent, from just over £60 to more than £72 for band D homes. A final decision will be made on February 4.

Last year, the county council charged £699. A ten per cent rise would increase its slice of Band D bills to £769.

In 2001, the police increased their charge to more than £64, almost seven per cent. A similar rise this year could see their precept increase to about £69.