TOUGH decisions have had to be taken by Sedgefield Borough Council to limit its council tax increase to 12.5 per cent.

Council leader Brian Stephens presented a report on the council's budget for next year to a cabinet meeting yesterday.

He announced that the Government grant to help pay for services will rise by the minimum 2.3 per cent, or an extra £165,000.

The council faces a number of unavoidable spending commitments next year to meet statutory Government targets.

These include improving benefits administration, street cleaning and grass cutting, and increasing contributions to the pensions fund.

Other spending pressures, including improving the amount of recycled waste, meant the initial budget showed an increase in spending of £1,326,000.

That would have required a council tax increase of 32 per cent, which Coun Stephens said was unacceptable.

As a result, council managers have identified savings of almost £700,000, including selling most of its interest at Heighington Lane Business Park, which means council tax will rise by 12.5 per cent.

About three-quarters of borough residents pay council tax at Band A, and this will increase from £92.85 to £104.45 next year, an increase of £11.60, or about 22p per week.

The equivalent Band D figures show a rise from £139.27 to £156.68, an increase of £17.41, or about 33p per week.

Coun Stephens said of the report: "It doesn't make good reading and it certainly does not make good listening.

"But that is the situation that we are in, and I'm sure other councils around the county will be in a similar position to ourselves."

Opposition member Councillor Ben Ord said: "Certain families in Sedgefield borough are going to struggle to find the extra money and I'm looking to the council for some sort of cost-cutting measures."

After the meeting, the council's director of finance, Brian Allen, said: "It has been a very difficult balancing act to look for savings to limit the council tax increase, which is still quite high, whilst not reducing service levels."

The overall council tax figure for Sedgefield borough, which also includes figures for Durham County Council and the police, will be announced at a special council meeting on March 1.