Council-tax payers in Aireborough, Wharfedale and Horsforth look set to face another below-inflation increase this year.

Leeds City Council is proposing to increase its tax for 2010-2011 by just 2.5 per cent, its lowest increase for 15 years.

The rise will add just over £27 to an average household Band D bill, which is currently set at £1,095 (not including fire and police service charges).

The authority’s joint leaders, however, are warning that some “very difficult” decisions had to be made to draw up the draft budget, which will be further discussed on Friday and voted on by all councillors on Wednesday, February 24.

Cost-cutting measures would include shedding around 350 jobs, achieved by not filling posts in ‘back-office’ areas and through staff taking early retirement. However, the Council is planning to spend some of the resulting savings in other areas, particularly social care.

Having been repeatedly criticised in recent months for its arrangements to protect vulnerable young people, the Council is proposing to increase spending on children’s social care by £6.2 million and on adult social care by £4.5 million.

Under the plan rents on council houses would go up by 3.1 per cent, which the Council says has been directed by the Government.

Council leader Councillor Andrew Carter said: “2009 was a tough year financially for many people and it was tough for the Council as well.

“Our income is down too and that means our resources are under a great deal of pressure because of our commitment to deliver first-class services to our city. Despite that, we are proposing another year of low council tax increases.”

The Council says its income is much lower than in previous years due to both the ongoing recession, which has affected its ability to sell surplus council land or buildings profitably, and reduced government grants.