COUNCIL tax is set to increase by even more than feared this April after Waverley Borough Council approved the maximum permitted tax increase on Tuesday night.

Following a 52 per cent cut in the revenue support grant Waverley receives from central government, the recommendation was either to raise the borough council’s share of council tax in April by 1.95 per cent, or if the Government permitted by 3.1 per cent.

Given the green light by Government, full council committee members approved the maximum percentage rise, which means Band D council tax in Farnham will increase by £59.10 per annum in 2016/17 rather than £57.26, taking into account tax hikes by Surrey County Council, Surrey Police and Farnham Town Council.

It takes the annual council tax bill for an average Band D home in Farnham up to £1,714.17, marking a 3.57 per cent increase on 2015/16.

Waverley leader Robert Knowles told council eleventh-hour representations to the Secretary of State for Local Government Greg Clark had improved the borough council’s settlement finalised last week but not by enough.

Waverley was given £304,000 in transitional relief over the next two years and the Government has withdrawn its proposed negative revenue support grant for 2018 that would have cost the council £350,000.

Commending the budget, Mr Knowles said: “Despite these positive changes, the net result means that we reluctantly need to increase council tax by £5 a Band D property. While this would not be our first choice, this increase represents under 2p per day extra for our tax payers.

“This members, is excellent value for the 110 services that this council provides after the past six years when we froze council tax.”

Mr Knowles said he was “really proud” to propose a balanced budget that protected funding for “vital community organisations which include five day centres serving our elderly residents, Hoppa, Citizen’s Advice and many more”.

The leader warned that Government funding cuts meant the council would have to rethink “how many much-needed” council homes it could still build and announced the business plan for its housing revenue account would be reviewed this summer.