RESIDENTS are being handed a reprieve as council tax is set to be slashed by 3.75 per cent next year.

In a move that would see Hammersmith and Fulham having the third lowest council tax in the country, the average Band D bill would be set at £781.34 - a reduction of £30.44.

If approved at full council in February, it will be the fifth year out of six that the local authority has cut its council tax bills.

Through this year's tri-borough merger, the council has saved money by combining services such as adult social care and children's services.

Leader of the council, Stephen Greenhalgh, said: "Combining services, management, overhead costs and expertise across councils is not only leading to better services in many areas, it is ensuring that taxpayers are enjoying some of the lowest council tax bills in the country. Whilst the cost of living continues to rise, we are proud to be putting money back in the wallets of our local taxpayers and we are proud to be protecting frontline services."

The council is due to make savings of around £22m over the next year from procurement, advertising and sponsorship income and by reducing transaction costs by making more services available online.

It is also on course to cuts its debt from £176million to £94m by the end of the next financial year.

However leader of the opposition, councillor Stephen Cowan, believes that this drop in council tax has come at a cost.

"The council is like an octopus," said Mr Cowan, "It gives with one arm, but rifles through your pockets with its seven others. They have introduced close to 600 stealth taxes as they began charging people to use personal trainers in the parks, they introduced a £12.40 hourly home care charge for the elderly, disabled and sick and even hiked parking rates up by 55 per cent. Meanwhile there is scope for a much wider range of cuts in all council taxes, considering they used £12m on consultants, £35m on a town hall redevelopment and a Tory MP accused them of wasting £5m on political propaganda on the rate. Labour backs council tax cuts and will introduce them if we win in 2014."

The council have released a Youtube video celebrating the fact that council tax is set to drop by at least 3%.

Performing Arts students from Ealing, Hammersmith & West London College (EHWLC) recorded their own unique versions of tracks from the Rolling Stones (‘I’m Three’), George Michael (‘Threedom’) and Blind Melon’s epic ‘Three in the Magic Number’ for the short video.