LOCAL councils are set to receive more than £760million in government cash for the coming year -- and government ministers say council tax increases should be lower than last year.

Lancashire County Council, which covers Burnley, will get £644million while Blackburn with Darwen Borough Council will receive £116million.

Local government minister Hilary Armstrong announced today the government handouts for all councils in England and Wales for 2001/2002.

Under the settlement Burnley is to receive £9.132million, Hyndburn £6.949million, Pendle £7.433 million, Ribble Valley will get £2.684million and £4.687 for Rossendale.

Ms Armstrong said the £44billion of government funding could lead to lower council tax increases.

The government has also targeted specific regionss for extra cash, including those affected by the recent floods and areas of high deprivation. Overall there is an extra £3billion nationally for local authorities to spend on key services including education and social services.

Ms Armstrong said: "The settlement provides an increase of 7.2 per cent in total government grant and a 4.9 per cent increase in general grant. This is on top of substantial increases each year since 1997/8. I would therefore expect the majority of local authorities to be setting a lower Council Tax increase this year."