A RISE of two per cent in council tax is due to be put before Reigate and Banstead Borough Council's executive tonight (Thursday).
The authority has decided to turn down the offer of a Government grant, equivalent to a one per cent rise, in return for freezing its share of the charge.
The executive will also be asked to agree budget savings of more than £1.1 million for the financial year which starts in April.
Council leader Joan Spiers has insisted the council is not "cash-strapped", and that it is cutting spending not because it needs to, but because it wants to.
However, the council's grant from central Government will be cut by £550,000 next financial year, a 12 per cent decrease, and the executive will hear that freezing council tax for the fourth year in a row would leave the authority with a black hole in its budget.
A report issued ahead of the meeting states that accepting the Government's offer of a freeze grant "would mean we face a shortfall of over £0.4 million in 2015/16 if we accept the current proposal and would increase our savings target by over £1.4 million over the next five years".
The council believes it does not need to hold a referendum if it puts the tax up by a flat two per cent, despite many authorities opting for a 1.99 per cent rise. It believes guidance from the Department for Communities and Local Government, which wants councils to freeze the tax, indicates a referendum only needs to be held if the tax is raised by "more than" two per cent.
The borough council increase equates to an annual rise of £3.87.
If Surrey Police and the county council put up their shares of the tax by a similar figure, total bills for an average Band D property would rise by more than £31. Figures will be finalised within the next few weeks.
The borough council's tax will go before full council for final sign-off next week.