LANCASTER City Council has finalised its budgets for next year, with broad agreement amongst the parties over a 15 per cent increase in the city's share of council tax.

The tax increase comes after a reduced grant from central government and is intended to maintain services and restore the council's balances to £1 million by next year.

MBI councillors hailed the budget as a sign that ' prudent financial management; had put the council back in a sound financial position.

Group leader, Cllr Tricia Heath, said: " Gone are the days of Labour's extravagant follies and unrealistic promises, financed on a wing and a prayer."

Labour deputy leader, Cllr Ian Barker, said the balances had only been restored to the same levels they were at the time of the last election.

A council spokesman said the rise represents an average of just 26p per week for households across the district.