Sutton Council is to hike council tax by nearly four per cent.

Households would pay an average of £46.43 more a year following the proposed 3.99 per cent increase, which the authority said “shares the burden” of cuts in central Government funding and would protect frontline services.

The council is facing a 29 per cent Government grant reduction, equivalent to £10m, in the 2016/17 financial year.

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Chancellor George Osborne gave local authorities the power to raise council tax  beyond the current two per cent cap after announcing future local government cuts in his autumn statement in November.

Sutton Council is to take up the option of a two per cent adult social care “precept” announced by Mr Osborne in an attempt to plug the gap between dwindling finances and growing social care costs.

It will also raise council tax by a further 1.99 per cent, under plans outlined in a report to a meeting of next week’s strategy and resources committee.

The report states: “The overall financial position faced by the council means that every option to reduce the funding gap has been considered.

"A council tax increase shares the burden of addressing the funding gap across all council tax payers whereas service reductions affect only users of that service.

"This modest 1.99 per cent increase will help protect key services that have a significant effect on people's lives."

Residents of Band D properties will pay the equivalent of 89p a week more following the hike, bring their annual council tax bill to £1,210.03.

A council spokesman said: "Before last year, Sutton Council had frozen council tax for five years. We are now considering putting it up again due to the unprecedented Government cuts to our funding, combined with increased pressure on services for vulnerable people.

"Between 2010 and 2019, we have to save £74m annually. 

"So far the council has saved £43m. We now have £31m more to save from our annual budget which currently stands at £148.4m.

"We are doing all we can to save money, while continuing to provide high quality services to our residents, by sharing services, being more commercially focused and reducing our workforce including senior management costs. We also have to change, reduce and in some cases stop services.

"By putting council tax up, we can generate funding that will help to keep some of those services running.

"Any decision on next year's council tax will have to be voted on at March's full council meeting."

The council has previously launched consultations on cutting youth services, children’s centres, libraries and theatres to save money.