Rossendale Borough Council is proposing to implement the maximum 2.99 per cent increase in council tax for the coming year. 

The council said the tax rise is in line with other local councils. 

The increase amounts to £8.95 per annum on a band D property.

The council said it receives 13p out of every pound of council tax collected, with over half the amount, 72p, going to Lancashire County Council (LCC). 

The announcement makes Rossendale the latest borough to implement the maximum council tax increase, after Burnley said it would put the tax up and Hyndburn also announced the rise.

It comes on top of Lancashire County Council also announcing the maximum 4.99 per cent rise for its council tax, while the Lancashire Police and Crime Commissioner Andrew Snowden is also increasing his police precept by 4.75 per cent.

Blackburn with Darwen Council, a unitary authority not part of the county council, is also planning on increasing tax by 4.99 per cent.

Chief executive of Rossendale Council, Rob Huntington, said: "The decision to increase council tax by 2.99 per cent is a measured response to the financial challenges we face. 

"We must emphasise that our council operates with just a fraction of the funds from central government we once received, making balancing the budget ever more difficult.

"64 per cent of our funding now comes from the Council Tax we raise, therefore the increase is crucial to sustaining the levels of service our community depends on.” 

Deputy council leader and lead member of resources, Councillor Jackie Oakes, added: "In these economically challenging times, it is imperative we address the financial constraints we are under. 

"We are committed to maintaining essential services and have allocated funds strategically to meet our statutory requirements while trying to balance the burden on our residents.

"On a band D property the proposed increase equates to an additional 17p per week." 

Rossendale Borough Council said it had successfully secured funding for major regeneration projects throughout the borough that, coupled with its own contributions, will ensure long-term benefits for residents and businesses alike.  

Rob Huntington added: "In the face of economic challenges, we have prioritised projects that will contribute to the sustained growth and well-being of our community and increase revenue.

"The council remains dedicated to delivering essential services efficiently, and the increase in council tax is a necessary step to safeguard these vital functions." 

The proposed budget will be discussed at the next full council meeting on the February 28. 

Across the country all top-tier councils plan to raise council tax by the maximum permitted, new analysis shows.

Blackburn with Darwen Council leader Cllr Phil Riley has previously claimed councils have been effectively forced to enforce the maximum rise to balance the books after the  Local Government Finance Settlement is handed out.

Of the 136 authorities which have declared their proposals, 128 (94 per cent) are looking to increase bills in April by 4.99 per cent – the biggest amount allowed by the Government without having to hold a local referendum.