Oxfordshire County Council plans to increase its share of council tax bills from March by just less than ten per cent.

Members of the executive committee yesterday decided to propose a rise of 9.8 per cent from April.

The increase, which would see an average Band D household paying £767.66 for county council services such as education, roads and libraries, must be approved by the full council on Tuesday, February 5.

It would give the council an income of £172m from council tax payers.

Most of the rest of the planned budget of £442m is from business rates and Government grants.

Backing the proposals, the leader of the council, Cllr Keith Mitchell, said the rise was necessary to improve services, particularly social services.

He said that a 14 per cent increase could only be avoided by switching £6.3m from other areas of the budget.

The executive has proposed borrowing £3m that has been set aside for future transport projects and paying it back in 2004 and 2005. Another £3.3m is to come from adjusting reserves and deferring interest payments.

Executive members agreed that almost half the increase was needed just to maintain existing services, with a similar amount required to ease pressure on social services due to a shortfall in Government funding.

Despite the planned increase, county treasurer Chris Gray said finances would remain tight.

He said: "We're sailing close to the wind. Even small changes in the scenario could capsize us."