RESIDENTS in Sedgefield could be facing a six per cent increase in council tax, but the borough council has vowed to invest £1.7m in council housing improvements.

The increase in tax is needed after the spending target for 2001/02 was put up by £500,000.

Until groups including parish and town councils and the police authority have submitted their precepts, the actual council tax levels could not be set.

The other main additional spending in this year's budget, which has been set at £10,723,000, is an extra £100,000 to meet the cost of providing the concessionary fares scheme, which is free.

The 30 per cent increase in spending on council housing is due to a major repairs allowance which will allow work such as window replacement and central heating modernisation to take place.

More than 990 residents in Newton Aycliffe will be included in the window replacement programme at a cost of £2.4m.

Elderly people will also benefit from a tenant-led improvement scheme, introduced to cover properties up to 50 years old.

A total of £1.5m will be spent to improve kitchens and bathrooms in more than 360 homes.

But council tenants could face a £1.75 rent rise in April.

A further £380,000 will be put into a tidy estates initiative, introduced in the last financial year.

The cabinet will meet on Thursday to discuss the council's budget