Councillors have reacted angrily to a threat that the Government could cap Cherwell district's council tax increase.

The move would cost the council £100,000 but save taxpayers only £1 over the year.

The council's executive on Monday approved a council tax rise of six per cent - up from £100 a year to £106 for Band D households.

But Nick Raynsford, the local government minister, has threatened to restrict the rise to five per cent.

West Oxfordshire District Council is most at risk of capping -- it is planning a massive 30 per cent increase in its share of the bill.

Cherwell councillors say capping would cost the council £50,000 in lost revenue and another £50,000 to re-bill every home in the district. Council leader George Reynolds said he had received a letter from Mr Raynsford indicating that the Government would be prepared to use capping powers.

Mr Reynolds said identical letters had been sent to 61 other councils in England and claimed there was clearly no intention on the part of the Government to work with or consult local authorities.

He said: "This council could live within its means if it wasn't for the ever-increasing burdens imposed on it by central government.

"Our figure of £106 is way below the Government's guideline of £180 for a council of our size."

He alerted councillors to the Government's withdrawal of funds for affordable housing, saying: "It will leave local taxpayers to pay the bill."

Oxfordshire County Council is set to levy a six-and-a-quarter percent rise taking its share of the bill to £924 (from £870).

The county council has also received a letter from Mr Raynsford threatening to limit its tax bills.

The fourth part of the total council tax bill is the charge Thames Valley Police Authority. A rise of 14 per cent has been discussed by the authority but not finalised.

Oxford City Council is not under threat as it is only proposing a four per cent increase.