The cabinet at South Lakeland District Council had recommended a rise of 4.5%.

However, a meeting of the full council was told that tight financial measures had resulted in the reduction of a �1.9m budget deficit.

Following a last-minute amendment, the rise is now set at 3.94%, the council's lowest increase for over a decade.

'Worked hard'

It was also hoped that increases in following years would be at a similar level.

Councillors were also told that a successful funding bid to the Cumbria Strategic Waste Partnership would bring in an additional �180,000 revenue and �400,000 capital to allow the kerbside recycling scheme to be extended to all households in the district.

Councillor Brendan Jameson, leader of the council, said: "We've worked really hard over the past year to get ourselves into a position where such a low increase was possible.

"We'll be able to sustain a similar increase over the next few years because we now have new ways of working.

"We're out of the comfort zone and constantly challenging our actions and looking for ways to improve everything we do."