Chester-le-Street District Council yesterday announced the biggest tax increase in the county, as it attempts to turn around its housing service.

Taxpayers in the district are to pay 9.7 per cent more than last year as the district council's charge for the average Band D property increases from £133.19 to £146.11 a year.

With the precept levied by Durham County Council and the police authority it amounts to £1,129 a year.

It is the biggest percentage increase of all seven district councils in County Durham, although at 25p per week for Band D payers, it does not translate as the highest bill. Band D tax payers in Durham City will be paying £1,144 under the city council's new precept.

Chester-le-Street council tenants will pay on average an extra £1.65 rent a week.

The district council said yesterday that these increases were largely because it plans to increase spending on priority services, to avoid closing facilities or cutting back services.

In particular, the council will be spending more on housing, injecting an extra £925,205 into the service.

The council is pulling out all the stops to turn around its housing department, following its second "poor" rating in two years by government inspectors.

As a result of the inspection the department was the first in the country to be referred to the deputy prime minister for potential intervention.

One of the failings the inspectors found was the way sheltered housing residents and other vulnerable people who used the Careline Service were unwittingly paying for the vast amount of closed-circuit television coverage in the town centre.

Staff monitoring the Careline alarms were also responsible for monitoring CCTV in the town centre.

Now arrangements for funding CCTV have been amended, freeing up an additional £62,050 for housing. Council tenants who use Careline's services will see a slight increase of 60p per week.

The council is also to appoint a fuel poverty officer.

Other initiatives earmarked for extra spending include:

* The renewal of play equipment at the Riverside and two other play areas.

* The redesign and replacement of bus shelters throughout the district.

* Fire safety measures at community centres.

* Lighting on district footpaths and garage areas.

Fees at all the council's leisure facilities are to rise by at least three per cent.