BLACKBURN and Darwen councillors are due to set the borough's new council tax levels which will fund a £183 million spending programme.

The council's ruling Labour group are proposing an increase of 2.9 per cent but overall bills are set to increase by 4.38 per cent.

People living in Band D properties will see their annual bill rise from £1,160.32 to £1,211.20.

People living in Band A properties will now pay be asked to pay £807.46.

The increase includes a charge of £100.70 for the Police Authority precept and £49.64 for the Lancashire Combined Fire Authority.

The cost of policing Lancashire's streets has risen by 14.99 per cent this year.

The council said it had been able to table an increase of only 2.9 per cent because of a favourable settlement from the Treasury.

According to government figures the council was given £137.2million for 2204/04, which is £7.8million more than the previous year.

The figures are set to be discussed at a full council meeting at Blackburn town hall on Monday night.

Opposition councillors are expected to table their own alternative spending proposals at the meeting.