Sunderland City Council agreed to raise council tax as councillors approved the official budget for the next financial year.
The council met from 4pm on Wednesday at the newly constructed City Hall, and after a four-hour meeting, secured an agreement on the budget, with 33 votes for plans to 28.
The announced budget falls in line with the continuing City Plan, in a bid to bring a more dynamic, healthy and vibrant city to Sunderland, the council said.