RESIDENTS of Okehampton will see a slight increase in their council tax next year as a result of the town council's latest budget analysis.

Each year the town council closely analyses its precept — the amount of money it receives from council tax.

At a meeting of the full council last week, councillors raised the town precept for 2012/2013 to £200,286 compared with £198,736 for 2011/2012.

The move sees the Band D property parish rate rise by around £1.50.

Councillors deliberated the move at length during the meeting, aware of the possible implications a tax rise could have on families struggling financially. The move will provide the council with additional funds for its reserves as it braces itself for potential Government austerity measures.

Cllr Tony Leech said: 'We have to be careful with any increases. Just one pound extra could be the straw to break the camel's back for some families living in Okehampton.

'At the same time it is a thin tightrope for us to walk to balance our own budgets. We have to be very careful.'

Town mayor Cllr the Rev Mike Davies said: 'We have to make sure that people know we are not putting fat on our budget, as there is a difference between doing that and being prudent. I think a slight rise would be a prudent move for the council to ensure we have healthy reserves in tough times.'

Cllr Jan Goffey said: 'A small rise now could prevent having to have a big increase next year, and lessen the shock and effect on many people.'

Cllr Maureen McDonald said: 'I would not like to find ourselves in a position of near bankruptcy. Any prudent housekeeper wants to ensure they have funds should they be needed, and a slight rise would be a prudent move.'

Cllr Kay Bickley said: 'Times are tight. I don't think we would be judged very well if our budget has any fat on it. I would like us to look at where we are spending the pennies, because the pounds will follow. We need to look at our electricity and heating consumption, and how our money is spent.

'Everyone in business is having to do it, families are having to do it, and we should have to as a council.'

The town precept forms part of the overall council tax bill for households. The majority of funds are for Devon County Council for its services, while West Devon Borough Council and the police share the remainder.