Council tax in Redcar and Cleveland will go up by just under four per cent despite Labour members abstaining from a vote.

Redcar and Cleveland Council’s budget was approved by a margin of 30 to 18 on Thursday.

As a result, residents will now see their council tax bills increased by 1.99 per cent and the adult social care precept by two per cent – a total increase on their bill of 3.99 per cent .

For a band D property in a non-parish area that would mean an increase of about £76.

The budget presented to the council by the independent/Liberal Democrat administration also introduces a series of changes to fees and charges including a 12-month pilot which would see new charging brought in for the collection of bulky waste.

Introducing the budget, Cllr Glyn Nightingale, cabinet member for resources, said: “We need to be realistic and we need to be rational.

“There is no alternative but to ensure that the council has the resources to fulfil our commitments on a permanent basis.”

He added: “The main features of the recommendations are to approve the three-year medium term financial strategy which sets an indicative for a balanced budget for 2020/21 without having to rely on reserves.”

Last year, Redcar and Cleveland Council was on the verge of ‘going bust’ unless the council balanced its books without having to dip into its reserves..

An audit report revealed that, having used all remaining reserves, the projected balance for the financial year ending March 31, 2021, would see the council unable to finance £1.6m of spending.

With no reserves to draw on the following year, the council’s overspend would be £10.8m – the year after that, £11.8m.

While the budget was supported by independents, Liberal Democrats and Conservative members, the Labour benches abstained from the vote.

Labour group leader, Cllr Carl Quartermain, said: “I cannot support this budget because it is lacking in detail, transparency and omits key priorities.

“It is a budget based on uncertainty and assumptions laid out by a clueless and uncaring Tory Government as a one-year stop-gap presented to us by ministers more interested in Brexit than local Government.”

He added: “This borough is woefully underfunded because of austerity and nothing has changed.”