Council tax bills are set to rise in Gateshead as budget proposals are expected to be approved by councillors this week.
Gateshead Council's budget proposals are set to be heard and voted on by authority councillors over two meetings this week.
If the plans are given the go-ahead, council tax bills are set to rise by 2.99%, which includes a 1% precept for adult social care services.
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In financial terms this means that households in Band A properties, which are the majority of the borough, will pay an extra 73p a week while those in Band D properties pay £1.10 more.
A report set to be heard by the authority's cabinet tomorrow (Tuesday) admitted this would be a blow to low income residents but said that funding cuts have left the council with "little choice" if it is to protect vital services.
The report also said the borough would continue with the council tax support scheme which means around 12,000 of Gateshead's poorest residents pay no more than 8.5% of their liability.
It said: "The Council recognises the impact of the recommended council tax increase on some of the most vulnerable in society and particularly those on fixed incomes.
"However, a combination of continued cost pressures and significant funding reductions has left the Council with little choice but to increase council tax to protect the delivery of essential Council services to the residents of Gateshead.
"The Council will continue to provide the current council tax support scheme that enables targeted support for those residents that are likely to be most affected by the increase."
In the financial year 2022/23 Gateshead Council needs to save £5.8m, which it will cover using temporary funding from the "budget sustainability reserve".
The borough plans to spend £5.9m on adult social care and £2.9m on children's social care to meet increased demand and spiralling fees.
Meanwhile the council wants to invest £1m to to continue social work in schools and deal with increased demand in children’s social care looked after children.
It also wants to invest £400,000 in parks and open spaces as well as £600,000 to fund a social worker academy.
This academy would tackle increased work loads and the difficulty the authority has recruiting experienced social workers.
Additionally £200,000 will be spent on extending "early help" posts which support families at an earlier stage to stop them needing social services.
Gateshead Council's cabinet will hear the budget proposals on Tuesday, and it is expected they will be voted on at a full council meeting on Thursday.
