A LACK of Government funding is being blamed for pushing up council tax in Redcar and Cleveland by 4.9 per cent.

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 analysis of spending across all departments. Coun Glyn Nightingale, member for corporate resources, said the savings had prevented a five per cent increase.

She calculated that the council was spending an extra £1.5m to take over several costly, but essential, schemes due to a lack of or an end to Government funding.

She 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 said the agreed budget reflected a period of major change for the council and that a 4.9 per cent increase is necessary to finance such change.

"All these improvements will dovetail into the council's key priority areas, outlined in its Community Plan," said Coun Nightingale.

"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 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.

The budget also covers major investment projects - £713,000 for expanding the recycling of household waste and £387,000 on equal pay and single status.

An information leaflet will be delivered to the 62,000 council tax payers with council tax bills from Monday.

The new charges, with last year's figure in brackets, are: Band A: £841.48 (£802.16); Band B: £981.73 (£935.86); Band C: £1,121.97 (£1,069.55); Band D: £1.262.23 (£1,203.25); Band E: £1,542.72 (£1,470.64); Band F: £1,823.22 (£1,738.02); Band G: £2,103.71 (£2,005.41); Band H: £2,524.45 (£2,406.48).

Parish levies, where applicable, are not included.