Councillors are set to gree a council tax rise of three times the rate of inflation at a meeting tonight (Wednesday).

The policy, economic development and employment committee is expected to agree a 9.6 per cent increase for 1999/2000, to be ratified by special council tax meeting on March 1.

The increase is less than the double-figure rise predicted after the Government announced its settlement package for Croydon last year. It would see tax on an average Band D property grow by £66 a year to £758.34.

There had been fears that swingeing cuts to the social services budget would force a council tax rise of up to 15 per cent to preserve essential services.

According Peter Leeming, the council's director of finance, a soaring rise in council tax has been averted through more efficient tax collection, better pension fund performance and higher interest on balances.

"We have now got a new valuation from the pension fund which allows us to reduce the costs of contributions. That will save us £1.5 million a year," he said.

But opposition councillors have called the rise a "disgrace."

Conservative Leader, Councillor Dudley Mead, said: "They are using the money that should go into the pension fund to keep themselves politically correct with the Deputy Prime Minister."

Deputy PM, John Prescott had recently warned local government that there was "no excuse for steep council tax rises."

The proposed package includes a contingency sum of £2.6 million to deal with among other things homelessness and asylum seekers and £490,000 to cover new allowances for the 70-strong councillors.

Council Leader Valerie Shawcross said: "Once again this is a budget which will ensure Croydon continues to deliver high quality public services in those areas which matter most to the public. As we promised last year, it is a budget which no longer relies on an annual raid on reserves which characterised budgets in years gone past. We are living within our means."

1999/2000 Provisional Council

Tax Figures

Property Band Amount

A £505.56

B £589.82

C £674.08

D £758.34

E £926.86

F £1,095.38

G £1,263.90

H £1,516.68

Converted for the new archive on 30 June 2000.Some images and formatting may have been lost in the conversion.