Council tax has been frozen in north Norfolk despite a 'number of financial risks' being faced by the district authority.

The decision means that from April residents in an average band D property will continue to pay £138.87 for the district council element of their precept over the next 12 months.

Cabinet member for resources, revenues and benefits Wyndham Northam told members: 'From April this year there are a number of changes which come into play, which will have an impact on the funding for local authorities. The most significant being the new system of funding which includes the retention of business rates.'

A tax freeze grant of £58,000 would be paid to the council each year during 2013/2014 and 2014/2015.

He added: 'Within the budget and financial forecasts there are a number of financial risks which the council is facing, including future funding.'

Liberal Democrat councillor Virginia Gay said: 'For our part we understand quite how difficult this year has been for north Norfolk residents and council staff nor do we think that now is the time for an increase in council tax.'

Mike Baker, a UK Independence Party member, said a freeze on council tax was a step in the right direction.

He added he was 'saddened' that the council had not looked at ways to reduce costs.

Council leader Tom FitzPatrick said: 'We are looking at every aspect on how we can provide the best service for local people in an economical way.'

He said efficiency savings, increasing income streams and boosting economic development were among other areas being looked at by the district on order to save money.