OPPOSING councillors are on a collision course over controversial plans to raise council tax in a North-East town by just under two per cent.

Darlington Borough Council's (DBC) ruling Labour group approved a raft of budget measures for public consultation in a cabinet meeting on Tuesday (December 2).

Among the proposals to be consulted on for the 2015/16 budget is a 1.99 per cent council tax increase each year up to 2019/20, the biggest rise the council can charge without triggering a referendum.

A final decision will not be made until early in the new year, when the budget is agreed, but Conservative group leader Heather Scott warned her party would not support a 1.99 per cent increase.

Council tax is the council's largest source funding of and will represent more than 55 per cent of DBC's income by 2020, if the increases are approved.

With local elections looming in May, Cllr Scott said: "I would like to lay down a marker that the Conservative group will not be supporting a 1.99 per cent increase in council tax.

"We will give further information at a later stage, as we are still in the very early stages."

Cllr Scott refused to be drawn when asked by The Northern Echo what the position of a Conservative-led council would be in relation to council tax.

The council is looking to balance its books in the light of mounting financial pressures, including a £22m reduction in Government grants since 2010.

A report prepared for cabinet members said council officers will continue to work on 'potential saving options' to present to the new administration after the election.

Other measures approved for consultation by the cabinet include the use of £4.7m from revenue balances to fund spending in the next two financial years.

It is also proposed to use £486,000 from reserves to cover the loss of the local welfare provision grant, a form of crisis funding available to vulnerable people.

Council leader Bill Dixon said it was 'vital' the authority was able to make ongoing provisions for people needing to draw on this resource.

The consultation period will run from Wednesday (December 3) and run until January 30.

A draft budget will go before the cabinet in February, prior to being recommended to full council.