RESIDENTS could be set for a 0.5 per cent cut in the tax they hand over Tendring Council next year.

The authority has earmarked the £2million in savings it has been forced to make following Government cuts.

It is the fourth year running that local authorities have had to find millions of pounds in savings following a cut in their government grant.

Speaking at Friday's cabinet meeting before he resigned, council leader Peter Halliday said: “We found the £2million savings again without cutting frontline services at all.

“It has been a very difficult task to balance the books.”

To achieve the savings, council workers were given only a one per cent pay rise rather than the expected two per cent.

Mr Halliday said changes to the structure of the council, staff allowances, street cleaning contracts, homelessness services as well as an increase in income had all helped to make the savings.

The move would save council taxpayers in a band D property about 75p a year.

Tendring Council only receives about 10 per cent of the overall council tax bill, with most going to Essex County Council. The council’s budget will not be set until next year.