The Labour group's spending plans were agreed by the authority

Both parties tabled budgets proposing a 3% rise in council tax - but the Tories subsequently withdrew their plans.

It means the Band D bill for the region rises by �31 a year to �1,049.

The Lib Dem, SNP and Independent Alliance Group had proposed raising the tax by 4.4%, but this was rejected by 24 votes to 13 at full council.

Last year the ruling administration stood down when it failed to get its spending plans through.

You have clearly gambled our public assets - the family silver of this region Cllr Jane Maitland

Labour group leader Tommy Sloan said the past 12 months had shown that fears over its budget plans had been unfounded.

He added that even with a 3% rise this year the authority would still have the lowest rate of council tax in mainland Scotland.

"I believe the people of this region will be grateful for that," he said.

Cllr Joan Mitchell, leader of the Lib Dem group, questioned the costs of keeping council tax low.

'Fag-packet budget'

"Over �8m of cash balances and property assets were used to make last year's fag-packet budget competent," she said.

"You have clearly gambled our public assets - the family silver of this region," added Independent councillor Jane Maitland.

"And it looks as if you are going to continue to do so."

However, Conservative councillor Patsy Gilroy said a 3% increase was not imprudent.

"When the budget was set last year at 3% there were many in this chamber who shook their heads," she said.

"It has now become clear it is possible to keep the council tax low and deliver quality council services."

Service entitlement

That was rejected by SNP leader Robert Higgins, who said the Alliance group plans could make a difference.

He said the 1.4% extra on council tax would deliver "the services we are entitled to in Dumfries and Galloway".

The votes of Labour and Conservative councillors then saw the 3% increase agreed.

In the Scottish Borders, previously released administration plans for a 1.9% increase were approved.