A TEESSIDE council is set to be one of only a few in the country not raising council tax levels next year.

Redcar and Cleveland Council, criticised for charging the second highest tax in the UK, is not increasing council tax while planning to invest in service improvements.

The local authority will also absorb an impending rise in the Cleveland Police Authority precept.

A series of initiatives including cutting over £2m in overhead costs and improving council tax collection rates to over 98 percent, which brought in an extra £1m, have been implemented.

Chief Executive Colin Moore said: "We have been ruthless about looking where we need to be managing more efficiently.

"We have achieved a true zero council tax rise. We can show improvement on our prudent reserves, an increase in spending on services and an improvement in services. And we can do all three in the coming year.''

Coun David Walsh said: "We are determined to turn the council's financial position around to improve the services we provide.''

Mr Moore told members last year that the local authority was on track to make savings through a combination of departmental savings, adjustment of budgets which consistently underspend, a shake up in the senior management structure and efficiency savings.

Coun Walsh said members, staff and the public of Redcar and Cleveland, have had to struggle for far too long with the double whammy of rising council tax levels and falling services.