Council tax rise - 1.95 per cent

Town hall chiefs voted for a 1.95 per cent increase, leaving residents of Band D properties with a bill of £962.88. This looks set to be the second lowest council tax in a metropolitan area.

And as he unveiled the coming year's budget at a special meeting last night, Council Leader Mike Doyle pledged to keep council tax increases for the next three years to a minimum of 2.5 per cent.

Last week, finance chiefs warned members they would have to increase council tax by seven per cent to sustain current spending levels.

But town hall bosses kept a lid on council tax by pumping cash reserves from savings made last year back into this year's budget.

They also dug deep into council coffers to unveil a £5,000 package for key areas of public concern including parks, highways, youth issues and town centre improvements.

Council Leader Mike Doyle said: "Cost effective management of our finances and our long fight for more funding has given us a solid base on which to provide first class services to our 180,000 strong community.

"But there is no room for complacency and I would like to make this pledge that we will continue wit ha stringent management approach to the budget to meet our three year spending pattern."

Unveiling their own budget proposals, Liberal Democrat councillors recommended a 2.5 per cent council tax increase.

Newton East Clr Suzzanne Knight said: "The reduction is good news for Newton residents, who for many years have faced the fourth highest council tax rates for a metropolitan authority.

"But it's worth noting that the cash reserves of almost £10 million that have been used to reduce council tax this year were taken from council tax payers in the first place. They were meant to be spent on council services, and I think it's rather obscene to be taking money from them and accruing it in balances," she said.

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