A Suffolk council is set to retain the lowest council tax in the county, despite a 3.5pc increase in its precept.Forest Heath District Councillors are set to approve the rise for the 2009/10 financial year after the local authority's coffers were hit by the credit crunch.

A Suffolk council is set to retain the lowest council tax in the county, despite a 3.5pc increase in its precept.

Forest Heath District Councillors are set to approve the rise for the 2009/10 financial year after the local authority's coffers were hit by the credit crunch.

The proposed increase, which is lower than last year, means that the occupier of a Band D property will pay �133.46 a year to Forest Heath.

Geoffrey Jaggard, council leader, said: “The current recession has hit Forest Heath District Council and we face the long-term loss of over �1m from falling interest rates plus loss of income from our planning and building control services. However, because Forest Heath District Council has always practiced good financial management, we are able to set a Council Tax lower than last year and significantly lower than the government's ceiling of 4.99pc.”