RESIDENTS in Tendring will see the portion of council tax they pay to the district council hiked by £5.

Tendring Council’s cabinet had originally proposed a 1.99 per cent increase in its share of council tax bills in 2016/7 – the maximum it could raise council tax without triggering a local referendum.

But shortly before Tuesday night’s council meeting, the Government said the “most economical” authorities would be allowed to hike council tax by £5 a year – equivalent to a 3.39 per cent increase in Tendring.

It means an average Band D home in the district will pay the council £152.64 in 2016/7.

Neil Stock, leader of the Conservative-led council, blamed the need to increase the bill on Government cuts – and warned that further cuts to services are to be expected in the coming years.

He said that by taking the 2015/6 and 2016/7 budgets together, the council narrowly avoided raiding its reserves.

“As the budget gap for 2016/17 of £294,000 was met from savings from 2015/16, it would be logical and financially prudent to use the additional funding of £93,000 that this increase will generate to reduce the call on this one-off money,” said Mr Stock.

He added: “I am wholly committed to protecting frontline services wherever I can.

“What I cannot or will not say is that there will not be any further reductions – if I did I would be acting irresponsibly by giving false expectations at a time of significant and frankly unprecedented cuts in Government funding.

“There will undoubtedly be further cuts to existing services coming down the line as we deal with the severity of Government taking away our income and we will have to face up to the responsibility of those decisions as and when they emerge.”

The council’s Government grant has been reduced from £6.7million in 2013 to £2.6million this year – and it is expected to fall to just £400,000 in 2019/20.

Tendring Council had last year put £160,000 aside to pay Essex County Council for streetlighting to be switched back on across the district for one year, but the cash was not used after County Hall said the scheme would need to be funded for at least four years.

The money will now be used for Tendring Council’s Big Society Fund, which gives grants to community projects across the district.

The budget also includes plans to continue a downsized residents’ free parking scheme, which allows residents to park in most council run car parks free of charge, for three years.

The changes include residents having to opt in for a virtual electronic permit, rather than a paper permit being issued to every household, and the scheme will also exclude the months of July and August.

Labour councillors voted in favour of the budget after group leader Ivan Henderson’s amendment calling for £221,000 be allocated out of the £2.1million unallocated New Homes Bonus to be used to fund the Careline lifting service for three years was accepted.

But UKIP councillor Richard Everett voted against the budget and said the free car parking scheme should not be cut back.

But he added: “If the UK were not in Europe paying umpteen billion subsidising other European economies the Government would be able to give councils a grant approximately four times the council’s budget support grant.”