Council tax in Epsom and Ewell is going to rise by 5.4 per cent, it was announced this week, meaning residents living in Band D properties will have to pay an extra £71.66 a year.

At a full meeting of Epsom and Ewell Borough Council this week, councillors agreed the 2008/09 budget and, together with the combined increase from Surrey County Council and Surrey Police, it means that the overall annual bill for Band D will be £1,399.06.

Councillor Keith Mann said that Epsom and Ewell had made £1million in efficiency savings and that the increase in tax was the third lowest in Surrey, even though there were extra pressures on its budget.

Coun Mann, who is chairman of the council's strategy and resources committee, said: "The council has listened to our residents' views and works hard to incorporate their ideas within the budget.

"We have outlined six key priorities as areas where extra focus and resources will be directed over the next four years. One of those priorities is cost effective recycling."

Council tax for Banstead residents has risen by the lowest amount in 13 years. Reigate and Banstead Borough Council's share of the annual council tax will rise by 2.95 per cent. The Band D average council tax bill will raise to £1,360.30, an increase of £59.32 a year.

Councillor Lynne Hack, leader of Reigate and Banstead Borough Council, said: "We've kept it low - despite the rising costs of providing services and the below inflation funding increase we received from the Government, which was in effect a funding cut.

"This has a disproportionate impact on our budget which means we had some difficult decisions to make when setting our next budget.

"We have been working hard to find efficiency savings to minimise the knock-on effect on council taxpayers without compromising the services we deliver."

Residents living in Mole Valley will also have to pay more as their council tax is raised 2.95 per cent, which means that Band D properties will have to pay £69.21 more a year.

However, the independent group of councillors at Mole Valley said there should be no increase at all.

Its leader, Councillor David Howell, said: "We must never forget that this tax comes out of our residents' already-taxed incomes, so it is only fair that they should not be called on to pay more than is absolutely necessary."