NORTH Dorset residents will be seeing their council tax bills rise by 1.99 per cent.

Councillors at North Dorset District Council voted to increase council tax by £2.18 for a Band D property to help stimulate economic growth.

A Band D household will be charged £111.96 for all services provided by the council in 2014/15.

The council says it is the eighth lowest council tax in the country and the lowest in Dorset.

Presenting the budget, council leader Deborah Croney said: “This small increase will enable the council to redirect its resources to achieve the new priority of economic growth in North Dorset, with the specific aim of reducing red tape and bureaucratic barriers for local businesses.”

The increase will mean the council can establish an economic growth fund of £56,300 to boost the local economy.

Twenty two councillors voted in favour of the budget and one abstained.