Fareham residents look set to receive the lowest council tax rise in Hampshire when borough council chiefs meet to set their budget tonight.

Fareham's ruling Conservative group leader, Sean Woodward, has forecast a rise of 2.41 per cent for the council's portion of the council tax bill - an increase from £123.30 to £126.27 for a Band D property.

He said the council has looked at more cost-effective ways to deliver services including not replacing staff when they leave and investing in IT packages to carry out work more effectively.

He said: "We have invested largely in IT over the last five or six years and that is now paying dividends. We need fewer staff now to deliver services - but we have a policy of no redundancies. We are now reaping the benefits."

Hampshire County Council has raised its share of the bill by 3.5 per cent - a sum that will be added to the 5 per cent rise by police and 1.6 per cent fire service increase.

This means that Fareham residents in Band D properties will pay £1,161.81 compared with £1,123.11 last year - an overall rise of £38.70 or just under 3.5 per cent.

Residents can expect rises in all fees and charges of about five per cent to offset the cost of improvements.

Parking in town centre car parks will go up from 60p an hour to 70p an hour. An adult swim also rises 10p - from £2.50 to £2.60. The charge for hiring council football pitches for adult matches is up £2 from £38.40 to £40.40.

Councillor Woodward said the council has managed to keep its portion of the tax low through the staff reductions and wise investment, despite complaining of a lack of government funding.

Fareham council received a 7.8 per cent rise in their government grant to £5.1m this year.

But the £400,000 boost comes amid new responsibilities such as crime and disorder partnerships, community strategies and drinks licensing, which amount to extra costs of £79,000.

Members of both political council groups are set to put forward budget proposals at a special meeting to set the council tax tonight.