A LACK of Government funding to local authorities has been blamed for rises of 4.9 per cent in council tax in Redcar and Cleveland.

During a meeting yesterday to agree the next year's financial budget, councillors also agreed £10.4m in extra spending.

The £177m budget will allow Redcar and Cleveland Borough Council to increase its education budget by £4.3m.

Savings worth £2.2m were also announced after an intensive analysis of spending across all departments.

Councillor Glyn Nightingale, cabinet member for corporate resources, said the savings have stopped an additional five per cent rise.

She said the council is spending an extra £1.5m on essential schemes due to a lack of, or end of, Government funding.

The new demands include £655,000 to pay for neighbourhood renewal schemes, £100,000 for the community warden service, £550,000 for social services plus £200,000 to create its new children's services department.

Coun Nightingale said: "Several changes forced on us by Government have pushed up council tax this year.

Government funding of the council's services has not matched the national average."

She explained how the agreed budget reflected a period of big change for the council.

Coun Nightingale said: "This includes extra money for creating more employment opportunities, tackling safety and crime, recycling and helping older people.

"Local residents can rest assured that the quest for better value for money and putting local people first will continue."

The budget is also covering £713,000 for expanding the recycling of household waste.

A leaflet, detailing how the budget has been created and what it means to the borough's 62,000 council tax payers will be posted with the new bills, from Monday.

Meanwhile, Stockton residents will benefit from the lowest tax increase in the Tees Valley, after councillors agreed to set its part of the bill at 3.9 per cent.

The council said additional increases from the police and fire authorities would push the overall rise to 4.13 per cent.

The tax increase was approved on Wednesday at a full council meeting to agree the authority's budget for the year of £216m.

* New council tax bands for Redcar and Cleveland, which include police and fire precepts, are: Band A £841.48, Band B £981.73, Band C £1,121.97, Band D £1.262.23, Band E £1,542.72, Band F £1,823.22, Band G £2,103.71, Band H £2,524.45.