EAST Hampshire District Council says it is “again planning to set itself apart from other local authorities” in the country by cutting its share of council tax instead of putting it up.

If approved, its 2.6 per cent reduction would be the council’s second consecutive council-tax cut, following a two per cent drop last year.

The council describes the move as “pioneering”.

And the district council has also announced its commitment to a third cut for 2018-2019, which will bring its share of council tax down to the lowest level since 2006-2007.

Council leader Ferris Cowper said the proposal would leave “£170,000 in the pockets of the district’s council-tax payers” and was part of the council’s strategy to become “financially independent”.

He added: “We are proposing to reduce our council tax at a time when nearly all local authorities are increasing their charge by the maximum amount allowed by government.

“East Hampshire District Council has stated its ambition to bring down council tax to zero and is committed to making itself free from reliance on government grant. This latest cut, and the promise to make further tax cuts next year, backs up this commitment with positive action.

“We have shown it is possible for councils to make their own money without increasing the tax burden on their residents and without cutting services.”

The council has been able to make the cut thanks to the “success of its business strategies and its property investments”, he said.

Council departments have also been marketing their services to other authorities and local organisations to bring in extra income. The council’s planning, community, communications and neighbourhood departments and its regeneration team RegenCo are expected to make a total contribution approaching £1million, he said.

The council has bought six “high-quality commercial properties” since 2013, totalling £12.5million – the latest being Alton High Street’s Iceland store. Such properties generate approaching £850,000 in rent every year.

The council says these investments provide around £700,000 more than could be gained through interest on cash deposits.

The plans were agreed by cabinet last Tuesday, with the the proposed cut put forward for approval by full council today (Thursday).

If accepted it will make the district council’s share of council tax for a band-D property £131.11, down from £134.55.