Councillors are recommending a council tax rise of 77p a week for most households.

The council tax hike of 3.99 per cent will be put forward at council cabinet later this month.

A cross-party committee of councillors backed the idea after it was revealed one of the council's key sources of income from central government is being "phased out."

Director of Finance and IT, Sean Clark, told the Corporate Overview And Scrutiny Committee on Tuesday night the Revenue Support Grant was being phased-out “in this Parliament".

He added the council was expected to become “self-sufficient” by 2020.

Tuesday evening’s scrutiny meeting had been tasked with looking at the issues surrounding council tax and the council’s budget.

Mr Clark said it was still unclear how much business rates Thurrock would be allowed to keep, but there was little doubt the council would have to make significant savings from 2017/18 onwards.

If the council was to balance the budget for 2016/17 without having to make further reductions to services, council tax increases were required, he said.

Facts and figures from Mr Clark's presentation:

  • Out of 55 unitary councils, Thurrock already has the third lowest council tax Band D.
  • Out of the lowest ten, Mr Clark said Thurrock is only able to raise the third lowest amount of Council Tax
  • Thurrock receives the third lowest level of Revenue Support Grant and has the third lowest net budget
  • Thurrock has the fifth lowest net budget per head of population.

Mr Clark also said the two per cent Adult Social Care part of the rise would bring in £1.1 million to offset the impact of the new minimum wage.

Law changes to the minimum wage are estimated to impact Adult Social Care contract provision by £1½ million alone.

Committee chair, Councillor Shane Hebb, said after the meeting: “We had a very interesting discussion and it was obvious most members were in support of the 3.99 per cent increase.

“Personally I favoured a 3¾ per cent rise, as I believe we have more to do at the council before the council defaults to calling for tax increases.

“The 3.99 per cent represents a 77p increase a week, or less, on council tax for 70 per cent of households. Like interest rates set by the Bank of England - council tax cannot stay indefinitely frozen, and a small step up this year will ensure services are maintained for the year.”

The committee’s recommendation will go before cabinet on Wednesday, February 10, which will make a recommendation to the full council which meets on February 24.