COUNCIL tax has been frozen in Winchester for the sixth year in a row.

Civic chiefs have capped local tax, charges and parking fees despite facing a £2.5 million budget deficit by 2020.

Cllr Stephen Godfrey, the council’s finance chief, said taxes and frontline services will be protected despite government cuts forcing consecutive drops in council spending.

Taxpayers in band D homes will pay £126.27 for city council services and £61.32 towards Winchester town – unchanged since 2010/11.

Cllr Godfrey said: “Although the national economic climate is improving and the Government’s deficit reduction programme is having an effect, we’re not yet out of the woods.

“Local government spending will continue to reduce – our grants from government will continue to reduce and people are still not finding it that easy to make ends meet.

“We can’t increase charges, can’t increase taxes, if we’re not as efficient as we possibly can be.”

A High Court ruling that the council acted unlawfully over the Silver Hill scheme has dented council forecasts, with an expected £261,000 legal bill from January’s judicial review to be arbitrated and split with co-developer Henderson.

The revised budget in the wake of the judgment has also set aside £200,000 for an independent review of the scheme and £170,000 per year to borrow up to £5 million which was previously owed by Henderson for land purchased at Kings Walk.

Officers are now looking to council reserves and capital spending for ways to fill income holes if Silver Hill is not developed in the next few years.

“With the Silver Hill project being on hold, there’s a gap in the finances in a couple of years’ time which we’re going to need to fill with other activities or find more savings,” Cllr Godfrey added. “That’s the focus of the next few weeks.”

The 2015/16 budget and tax rates were given final approval at full council last Thursday.

Looking to future years, Cllr Godfrey said council efficiency was a priority over tax cuts.

Benefit claimants and low-income workers can also have the first £60 of their weekly income tax-free – up from £50 last year – if they join the council tax reduction scheme.

Single claimants will receive £30 duty free under the plans, which councillors hope will help those hit by national welfare changes.