The proposed increase in council tax is set at 1.9%

It would see band D property rates rise �20 to �1084 a year.

The financial proposals for the year 2007/08 compare with an increase of 4.4% introduced last year.

SBC leader David Parker said he was "delighted" to table the plans. The draft budget will be put before council for full approval on 8 February.

"The rise is below the rate of inflation and is expected to be lower than the average rise for Scotland," he said.

"The council tax level will remain one of the lowest in mainland Scotland.

"It was a priority of the Independent/Conservative administration to protect core services while delivering the lowest council tax increase ever."

'Efficiency savings'

Mr Parker said that a low council tax increase did not mean services would suffer.

He said there would be increased investment in frontline services.

Council finance spokesman Neil Calvert said proposed savings would not affect services.

"�2.2m in efficiency savings have been identified across all departments," he said.