RESIDENTS are facing a 1.99 per cent hike in the cost of their council services.

Finance chiefs at Labour-led Durham County Council are recommending a 1.99 per cent increase in the authority’s council tax levy, which they say would raise an extra £3.398m over the year ahead.

A rise of two per cent or above would trigger a costly local referendum.

Conversely, the Government has offered Durham a grant worth £2.18m if it freezes council tax.

The authority’s preferred option would mean Band A householders paying an extra 33p a week.

The issue will be debated at a cabinet meeting at County Hall next Wednesday (February 11) before the 2015-16 budget is finally settled by a full council meeting on Wednesday, February 25.

The proposed budget also includes an extra £52m of investment, taking the council’s total capital programme up to 2017 to £366m.

That includes £93m for building new and improving existing schools, £101m for roads, £18m for Broadband, £14m for industrial estates and £8m for town centres.

Council Labour leader Simon Henig said: “Although the council faces the challenge of significant funding reductions from government the need to continue to invest in the county’s infrastructure is vitally important.

“This investment will maintain and improve infrastructure across the county, helping to secure existing jobs whilst also creating new jobs.”

Liberal Democrat Mark Wilkes welcomed a move to reduce councillors’ travel expenses from 48p to 45p per mile; but questioned why a full council meeting had rejected the suggestion just two weeks ago.