A council tax rise of 4.99% has been confirmed for North Tyneside after councillors voted in favour of the hike.
The hike equates to a council tax Band D property paying an additional £87.98 a year, while Band A properties will pay an extra £58.65. However, despite the rise, the majority Labour group has stated it will protect frontline services and will not close council facilities such as libraries.
The council faces a financial black hole, after mitigations and efficiencies, of over £8m.
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Councils across the UK were offered the opportunity to raise council tax by 4.99% in Jeremy Hunt MP's Autumn Statement last year.
Coun Martin Rankin, Cabinet Member for Finance and Resources, said: "The council is aware we are operating in unprecedented economic times as we deal with the global markets, such as inflation, especially in energy costs and supply chains.
"The challenges this year have been significant in their financial impacts. Wider inflation pressures have created a cost of living crisis in our communities, something these proposals will address.
"Our budget continues to be driven by the key priorities set out in our North Tyneside plan, a thriving and secure, family-friendly and greener North Tyneside. The mayor and cabinet have an ambitious plan to help those who need it most while continuing to invest in all areas of the borough."
Coun Rankin went on to say the local authority will ensure the most vulnerable will still receive council tax support. A total of 9,300 working-age residents will continue to pay reduced council tax and 3,900 residents will pay no council tax.
The budget faced scrutiny and was not backed by either Conservative or independent councillors. The Conservative group claimed the Labour budget did not do enough to tackle anti-social behaviour, road repairs, potholes and pavements.
The local Tory group proposed their own budget which was roundly voted down by the governing Labour majority.
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