RESIDENTS in parts of the North-East are to pay at least £37 more for their council services from April.

Sunderland City Council is increasing council tax bills by 6.4 per cent - more than twice the current headline rate of inflation.

This will mean that people in Band A homes will face demands for £607.44 during the 2001/2002 financial year, compared with the current £570.69.

The city council provides all services in the area, apart from the police and fire services whose levies are also included in the new bills.

Council tax payers in County Durham face increases of at least £20 - 4.1 per cent - but their final bills are not yet known as district and parish councils have yet to announce their levies.

Sunderland's Labour leader, Colin Anderson, said the council could look forward to its healthiest financial future in years.

"We are keen to target much of the increase to education and social services.

"Even though the teachers' pay rise was higher than anticipated, we have been able to meet the cost in full and increase the amount of money going directly to schools.

"For the first time for many years we can preserve our services and add money to our priority area.

"As well as the key national priorities, our own consultations with local people have highlighted a need to improve standards of street care, so next year we are putting additional money into street lighting and cleaning.''

Councillor Anderson said for most council tax payers - those in Band A homes - the increase worked out at 70p a week.

He said that he believed they would agree with a "modest'' rise that improved services.

The new bills will be: Band A £607.44; B £708.68; C £809.92; D £911.16; E £1,113.64; F £1,316.12; G £1,518.60; H £1,822.32