COUNCIL tax will rise by 4.57 per cent for Stockton residents - an increase of 87.6p per week for band D properties.

Effective from April 1, the 2006-07 figure was agreed at a meeting of Stockton Borough Council on Wednesday evening.

The figure includes increases in precepts set by Cleveland Police, Cleveland Fire Brigade and an average increase from parish councils.

The rise is in line with the national average, despite the fact Stockton's central Government allocation fell short of expectations.

The council expects next year's rise to be reduced to 3.9 per cent if external financial factors remain consistent.

Council leader Bob Gibson said that although setting the figures had presented a challenge, services would continue to improve for the future.

He said: "The council has done extremely well to set this budget.

"It is not only well within the Government's limit of five per cent, it will also allow us to increase provision in certain vital services.

"Yet all this is against a grant increase of just 2.2 per cent - the national average is 3.1 per cent - and the achievement reflects efficiency savings we have been working hard to achieve over the past year."

For the first time, the overall budget did not include funding for schools which are maintained by central Government.

Allowances within the £125,786,000 budget did include:

* £500,000 for additional care for adults with complex learning disabilities;

* £300,000 to further expand the green waste service

* £175,000 to improve the borough's markets;

* £60,000 to improve Preston Hall and extend the museum's community outreach programme;

* £250,000 for extra adaptations and equipment for disabled people

* £50,000 towards changing facilities at Harold Wilson Recreation Ground in Thornaby.

The Liberal Democrat group on the council had proposed devolving money for environmental improvements to areas that do not receive funds from central government.

Councillor Maureen Rigg, leader of the Liberal Democrat group, said the money was needed in deprived areas to help build communities and so decisions can be made by the people who live with them.

She added: "Although the vote wasn't won tonight our proposal should be a first step in giving people in all areas of Stockton some say in improvements to the environment in their area."