Lancaster City Council announces 2% tax increase
Lancaster City Council is raising its council tax level by 2% after a two-year freeze.
Leader Eileen Blamire said the financial outlook was "incredibly bleak" and freezing it again would have an "unacceptable impact" on services.
She said it was raising council tax because big efficiency savings have already been made and the authority will face a "huge cut" next year.
LCC receives around 13% of total council tax to spend on its services.
Of the remaining tax income, 74% goes to Lancashire County Council with 9% to Lancashire Police Authority and 4% to Lancashire Combined Fire Authority.
Labour leader Ms Blamire said: "Our budget now stands at £5m less than it did three years ago and in 2014/15 we will have to make further savings of £1.2m and then £2.5m in 2015/16.
"We therefore need to do what we can now, to try and protect vital frontline services in the future and to do that a modest increase in council tax is necessary."