STOCKTON Borough Council has approved a package of improvements to services, despite setting a below-average rise in council tax for the coming year.

Councillors have set an overall budget of £131,375,973 for 2007-8, a 3.9 per cent increase, keeping below the national average of 4.2 per cent.

Band A council tax payers - almost half the borough's total - will pay an extra 53p per week.

Additional funding for services over the coming year includes £800,000 for children's services and £400,000 for adult social care.

The council will maintain its concessionary fares scheme, which will cost more than £2.5m.

Council leader Councillor Bob Gibson said the extra investment would mean the authority could continue its priority of improving services for the future.

"We are strongly committed to achieving the best deal for our taxpayers and I am very proud of our record for both value for money and excellence in services," he said.

Last week, the Audit Commission rated Stockton as the country's best-performing council.

It was awarded a four-star ranking for performance and officials said it provided good value for money and is improving strongly.