And when the fire and police service budgets are taken into account – figures which the council has no direct control over – the total amount that people will pay will go up by 1.9%.
The rise was due to be agreed by councillors on March 3. It follows a pledge by the council that its own council tax rises will be no more that 2% over the next three years.
The council’s budget includes extra money in several vital areas. These include more services for an ageing population and the need to invest more in recycling and move away from environmentally damaging landfill.
Meanwhile, in the wake of the Baby P tragedy the council has also pledged to commit extra resources to children’s care.
Investment in children and young people is predicted to rise by £3.9M while extra money for older people’s services is likely to rise by £2.5M.
Council finances are under greater pressure due to the economic downturn, with less revenue being generated from the sale of land and council houses.
Council leader Peter Smith said: “To achieve a council tax rise of under 2% the council must make savings of £6.9M each year over a three year period.
“We are listening to our customers and ensuring that we maintain those front-line services that are important to our residents, whilst helping the most vulnerable members of our community.”
He added: “We know that many of our residents continue to suffer as a result of the economic downturn.
“As a result we made a commitment to keep the council tax increase to a maximum of 2% over a three year period.”
The new band D rate for most of the borough is £1,368 – up £26 on last year.