COUNCIL tax is to rise by more than £50 for most people in Darlington - with more increases planned in following years.

Darlington Borough Council has announced proposals to increase council tax bills by 12.5 per cent this financial year.

The authority, which is also having to make savings of £1.2m, says the increase is necessary to maintain a good level of services in the town.

But it has stressed that there will be no job losses or cuts in the most vital services, and that the increase will mean more money will be spent on education and social services.

Among the services where savings have been identified is car parking in the town centre.

This is going up by 10p an hour, with the council justifying the increase by pointing out that money spent on closed circuit television in the town centre has resulted in car crime falling to an all-time low.

The council is also proposing to close its staff restaurant in the town hall, with employees being encouraged to use facilities in the Dolphin Centre nearby.

Council chief executive Barry Keel said that despite the increase, Darlington would still have the lowest council tax levels in the North-East.

Although other local authorities in the region have still to announce their proposals for this year, Band A council tax payers in Darlington last year paid £67.78 less than people in the same band in Middlesbrough and £226.77 less than those in Redcar and Cleveland.

"People of Darlington deserve good quality services and we as a council can deliver these services, provided we have the right level of resources," he said.

The council tax increase will result in an extra £1.9m being spent on education and £900,000 on social services.

Geoff Pennington, director of education, said: "It will mean increased money for additional pupils, money to raise standards and improve literacy and numeracy.

"More money will also go to develop information technology, reduce exclusions and truancy."

As part of the council's medium-term financial plan, it has forecast council tax levels to rise by 9.5 per cent in 2002/03, and 4.5 per cent in 2003/04 and 2004/05.

Tony Richmond, the leader of the Conservative group on the council, said there had been more than £8m in cuts made in Darlington since the Labour Government came to power in 1997.