Despite recieving one of the worst Deals in the country from the Government, Lib Dem Liverpool has kept Council Tax rises to a minimum.

Council tax bills in Liverpool are to rise by just 76 pence a week for the majority of residents in the city - less than the price of a loaf of bread.

At the annual budget meeting last night, councillors voted in favour of a 3.7 per cent increase.

The rise of 76 pence applies to the 64 percent of homes in the city which are in Band A, while residents living in Band B properties - 15 percent of council taxpayers - will pay an additional 89 pence per week.

The budget includes an extra £1.6 million for social services, £300k towards improving Liverpool's recycling rates and £4 million for Capital of Culture.

Lib Dem Council leader Mike Storey said: "Liverpool has received the worst grant settlement in the country from the government - just 4 percent. The national average was 5.6 percent. That has cost the people of Liverpool £10 million.

"Despite this, we have managed to keep the rise in bills to around inflation while at the same time protecting front line services.

"We have an unrivalled record over the last six years in which the city has lost its tag as the highest council tax in the country. It's vital that we continue to keep the council tax as low as possible."

"It is a major achievement for the city council to keep the rise so low when other council's who have received a far better settlement are struggling."

The rise will increase to a total of 4.8 percent when the police and fire authority precepts are added. These are beyond the control of the city council.

Councillors where amazed when Labour Leader Joe Anderson insisted that Liverpool had a good setlement and should have got £5 million less!

This was despite all Council Leaders on Merseyside (Labour & Lib Dem) joining forces to oppose the Government's settlement for Merseyside.

Councillor Keith Turner, Lib Dem executive member for resources, added: "This is a continuation of our good financial stewardship. Our finances are stable while services are continuing to improve."

Liverpool has an unrivalled record on council tax in recent years. It was frozen for three years in 1998/9, 1999/00 and 2000/01, reduced by 3 percent in 2002/3 and increased by around the level of inflation in the last two years.

At the same time, the city council has gone from providing the third worst services in the country to being ranked as a 'good' local authority, according to the latest Comprehensive Performance Assessment by the Audit Commission.

Despite claiming Liverpool had a good setlement, Labour councillors where unable to present an alternative budget - proving they are not fit to rule our city.