North Tyneside Council bigwigs have approved budget proposals including a 4.99% council tax hike - but they stress the authority will continue to protect the vulnerable and keep frontline services running.
The 4.99% hike comprises a 2.99% increase in general council tax and a 2% rise in the adult social care precept. The council tax rise has not yet been officially enacted in North Tyneside as the financial proposals need to be approved by the full council next month.
According to council documents: "Adults and children’s social care are the key areas of financial pressure for the authority. For adults and children, increases in both the number and complexity of cases, together with workforce pressures and the inflationary pressures from our external providers, are creating significant pressures on resources."
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The rise is open to all local authorities who wish to increase their tax intake. It was approved nationally by the Chancellor of the Exchequer Jeremy Hunt in his Autumn Statement last year.
According to the government, the potential rise in council tax will generate an extra £7m for the council.
Coun Martin Rankin, cabinet member for finances and reserves said: "No council wishes to increase council tax unless necessary but as the report sets out an increase of 4.99% is baked into the government's assumptions.
"The government has, in a small way, recognised the impact of rising bills and has introduced an additional 100m of one-off grant funding to support economically vulnerable households with council tax support payments Our allocation is £420,000 and it will be used to supplement the authority's own packages of financial support."
According to coun Rankin, if the council tax rise goes ahead 9,300 working age residents in North Tyneside will still receive council tax support. A further 3,900 working-age residents will have no obligation to pay council tax.
The council also has no plans to close any council services such as leisure facilities or libraries.
Elected Mayor Dame Norma Redfearn said: "After 12 years of austerity, to be quite honest, I think we have done wonderfully well to produce a budget like that, which is about looking after people and taking care of them.
"If you look around at a lot of authorities they don't still have their libraries and if you ask our residents they will tell you they are important. They are very important to our young people for their learning, many use the computers because they don't have one at home."
Councillors will vote to approve the possible council tax rise at full council on February 16.
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