HOUSEHOLDS in Herefordshire will be hit with an increase in council tax of 8.5 per cent in the next financial year.

A full meeting of Herefordshire Council on March 8 unanimously agreed a rate of £807.12 be levied on the average 'Band D' household

Although the increase is three times the rate of inflation and higher than Government guidelines, council tax levels in Herefordshire remain the lowest in the West Midlands.

The rise is needed to make inroads into the £1.6 million overspend by council in this financial year, including a £464,000 overspend on social services. In 2002/2003 the council will have an extra £850,000 for social services.

A reduced income from markets of £230,000 due to the foot and mouth epidemic was a factor in the increased levy.

Police precept also rises, with a Band D household asked to stump up £104.50 for the service.