MALVERN Hills District Council is set to hike its share of council tax so it can maintain its level of services.

At a meeting of the council's executive committee this week, members voted unanimously to recommend approval of a budget which would see council tax on a band D home increase by £5.

The budget now has to be approved by the full council, which meets next week.

The council has faced a funding crisis since it was announced in December that its formula grant settlement, the money it gets from central government, was to be reduced by 40 per cent for the coming financial year, £778,788, as compared to £1,302.774 in 20015/6.

The council took a second hit after a national decision reducing the amount of business rates that doctors' surgeries pay, meaning the council will have to pay back £2.35m to surgeries overcharged between 2005 and 2010, and which will also cost the council another £160,000 a year in lost income.

Cllr Paul Cumming, the portfolio holder for finance, said: "In spite of the increase, we will still be the 24th lowest charging council in the country."

Savings are to be met by ongoing efficiencies, permanent budget reductions and increased income from services.

The council will have an overall budget for 2016/17 of £8,749,610, in line with its medium term financial plan.

This pays for the services the council provides, which includes rubbish collection, planning control, tourism and economic development, car parks, street cleaning and public toilets.

The proposed budget also shows the council maintaining a general fund balance of £1.89m, within the projected limits set out by the medium term financial plan.

The tax for Malvern Hills District Council will next year be £142.60 for a Band D home, in the bottom quarter of all 201 district councils in the country.

However, the district council's share is only a small proportion of the overall council tax bill, which includes payments for the county council, police and fire authorities, and town and parish councils.