WAVERLEY Borough Council is planning to increase its portion of the council tax by 2.4 per cent - its smallest percentage rise in 10 years. The surprise proposal, which will be put before the council at its budget meeting on February 21, was given the approval of the council's executive on Tuesday. "Sadly, the impact through the letter box will be much diluted thanks to Surrey County Council and the size of figures that are being talked about there," said executive member Chris Mansell. For earlier in the day had come the expected news that the county council, which is responsible for around three-quarters of the council tax bill, will be increasing its demand on tax payers by five per cent. Indications had been that for Waverley, the choice would be between the 4.9 per cent rise being recommended by council officers and three per cent preferred by the ruling Liberal Democrats. In the event, portfolio holder for finance Stewart Edge proposed that as inflation forecasts had fallen from three per cent to 2.4 per cent, the council should reduce its proposed increase accordingly. "We very much understand and share the concern of residents about the over-inflation increases which they have had on council tax and, clearly from Surrey County Council, will continue to get," he said. Mr Edge indicated that Waverley would be able to balance its books by reducing the provision it had made for inflation and taking the remaining shortfall from balances. Commenting afterwards, he said: "Although officers had identified a variety of future uncertainties which would require higher levels of council tax, members of the executive felt that during the next two years lower levels are possible through the prudent use of balances." The council was keen to flag up various projects on which substantial amounts of money would be spent. These included £385,000 on replacing playground equipment across the borough and £92,000 per year will go on providing improved maintenance, security and cleaning services to the borough's parks and open spaces. Users of Farnham Sports Centre will also benefit from improved facilities as councillors agreed to support a £1.8million refurbishment programme with an initial investment of £300,000. Mr Edge said: "We know that residents want us to find the money to provide good quality services as well as keep the council tax rise down. "It is difficult to do this, but Waverley's executive heard that the council is showing efficiencies which exceed the government's efficiency target. "Over the last two years, huge efforts have been going on behind the scenes and I am extremely pleased that as a result of this work, it has been possible for us to achieve over £300,000 in annual staffing efficiencies." Meanwhile, Surrey Conservatives have condemned the government over its level of funding for the county council and said they were left with little choice but to agree a five per cent rise in council tax. Conservative group leader Nick Skellett said it had been one of the most challenging budgets he had had to propose since becoming leader of the authority in 1997. "Surrey's financial settlement this year is such that we now receive the second-lowest per-head grant in the country, leaving us to raise some £465m from Surrey's taxpayers. "Where we get £95.85 to spend per resident from the government, Labour-controlled Lancashire gets £191.96." The Conservative administration claims that had it not anticipated the unfavourable grant settlement from the government, and instigated the Business Delivery Review, which has delivered into the budget savings of £17.9m, then the authority might have found itself in real danger of being capped by the government for setting an increase in council tax above five per cent in order protect frontline services. The leader of the Liberal Democrats on Surrey County Council, Hazel Watson, claimed that the administration had brought the problems on itself by not acting sooner in carrying out a thorough financial review. "Unfortunately the review carried out has failed to make savings where required and instead has proposed cuts in frontline services." she claimed.