THE North-East’s biggest council has voted to raise council tax for the first time since 2010 – by as much as possible without triggering a local referendum.

Labour-led Durham County Council today (Wednesday, February 26) backed a 1.99 per cent hike, just under the two per cent that would have prompted a countywide vote.

Conservatives and Liberal Democrats had urged Labour to accept the Government’s offer of a grant of £2.04m for freezing council tax, with Tory leader Richard Bell accusing Labour of taking money from taxpayers’ pockets.

But Labour leader Simon Henig said accepting the grant would mean extra cuts and during a recent consultation about two-thirds of residents favoured a small council tax increase to reduce the severity of further savings.

The North-East’s biggest council faces cuts of £242m between 2010 and 2017, has cut library opening hours, bin collections, leisure centres and home-to-school transport and is axing about 2,000 jobs.

Councillor Henig said the the 2014-15 budget protected frontline services “wherever possible” but next year would be more difficult and the authority would have to “look at everything”, including leisure centres, libraries, bin collections and children’s centres.

He slammed the Government’s agenda, saying there was no justification for forcing greater cuts on areas of greater need, but “unfortunately this is becoming a pattern”.

The Lib Dems proposed freezing council tax, cutting management, marketing and travel expenses and putting more cash into highways.

The Tories wanted to freeze council tax, centralise some back office functions and axe the council magazine.

The Durham County Council Independent group suggested spending more on roads.

All these amendments were soundly defeated.

The Derwentside Independents made no alternative proposals.

The budget also includes a £262m investment programme, including £5m for a new Durham bus station and an extra £1.3m for roads.

About £50m will be spent improving council houses, while rents will go up by 4.62 per cent. Garage rents will increase by 3.2 per cent.

Despite an independent panel recommending a one per cent rise, councillors agreed to freeze their allowances pending further talks.

Before the meeting, Durham People's Assembly, Unite Community and Durham Miners' Association staged a protest against cuts on the steps of Durham's County Hall.