EAST Hampshire District Council is set to cut its share of council tax by two per cent, making it one of the only councils in the country thought to be considering a decrease this year.

If approved by full council, the cut would be a serious statement of intent for the council which is trying to reduce council tax to zero by 2024.

EHDC says it has been able to buck the national trend, despite unprecedented financial pressures on local authorities, through shrewd investments and money-making ventures.

Council leader Ferris Cowper, said the cut shows EHDC stands out from the crowd. “Our financial strategy is radical and unique,” he said.

“Where many councils cope with a drop in income by raising taxes or cutting services we have decided to go a different way.

“We aim to be self-sufficient by removing our reliance on government grants and, if we can, reducing our council tax to nothing.

“And we plan to do all this while maintaining our services to the highest possible standards. By cutting our council tax for the 2016/17 financial year we will show our ambitious plans are serious and achievable.”

The council’s cabinet agreed the proposal last Thursday with the final decision to be taken by full council on Thursday, February 25.

A survey by The Local Government Chronicle showed of 115 councils canvassed, EHDC was the only one contemplating a reduction in tax.

It is expected government grants to councils, traditionally one of a local authority’s main sources of income, will reduce by 48 per cent between 2016 and 2020 and eventually disappear altogether.

The council intends to make up this shortfall in cash by seeking out and investing in new sources of income.

Money-making business ventures, the sale of services to other local authorities and investment in blue-chip commercial properties are all bringing in income.

It says a decision to invest in property instead of making cash investments is paying off.

The council has purchased five properties which generate £759,000 in rent every year, approximately £650,000 more than could be gained through leaving it in the bank.

EHDC also stated savings continue to be made through making its services more cost effective.

If approved the two per cent reduction in council tax will leave band D householders paying £134.58 to EHDC as its portion of the council tax bill – it is currently £137.33.