COUNCIL tax for people living in Worcester looks set to increase next year by two-and-a-half per cent, it has been announced.

Worcester City Council’s cabinet has unveiled its proposed budget for 2010-11 which also includes plans to freeze car parking charges and provide continued CCTV monitoring.

The council has said there are no new proposals to make further reductions in spending and services but will explore “shared and collaborative working to improve efficiency and cost savings”. The council tax rise of only 2.5 per cent is less than last year's rise of 4.9 per cent.

Councillor Simon Geraghty, leader of the council, said: “We are very pleased to be able to announce that our existing plans are on course to achieve a balanced budget despite the continuing very low increase in government grant of only half a per cent (£41,000).

“The last 12 months have been a very difficult time for the city council, as we have faced the need to reduce our budget by over £3.1million during 2009-10.

“The decisive action we took last year has placed us in a much stronger position this year, and we are able to balance the budget without having to announce further reductions.

“Our share of the council tax bill will only rise by a small amount less than 7p per week for most of our residents, and car parking charges will also be frozen.

“These measures are aimed at recognising the impact of the recession on residents and businesses.”

The proposed budget is subject to consultation with residents and scrutiny by councillors at a cabinet meeting on Wednesday.

A final decision on the budget will be made in February. Labour leader Adrian Gregson said he was sceptical.

He said: “There is now going to be a consultation process so it is a bit early to make a judgement. However, there are a few questions which are raised. We have just had a year of major budget cuts, where we have lost jobs and cut services, and we are being told we will only have to raise tax by two-and-a-half per cent. How accurate are these proposals?”