WINCHESTER’S council tax is set to rise for the first time in seven years.

Civic chiefs have proposed ending their long-standing freeze to cope with a 34 per cent budget cut from the Government.

The increase was backed by the powerful Cabinet yesterday.

The final decision will be made a meeting of full Council next Thursday evening at the city Guildhall.

The increase has been caused by a 34 per cent drop in central Government grant. The support is due to disappear in 2018.

Cllr Stephen Godfrey, leader of Winchester City Council, said the council had become in recent years dependent on the New Homes Bonus. "We have either to build a lot more houses very quickly or we need to cut our cloth on the budget.

"It is a hard decision to raise council tax after seven years, and with great reluctance I propose this increase. It is not something I want to do but we have to think about how we can safely deliver the services we need."

There will be on increase in councillors' allowances. It will be reviewed next years after the number of members drops from 57 to 45.

Cllr Lucille Thompson, the leader of the Liberal Democrat group, accused to the ruling Troy group of lacking ambition. She said: "This council has been squirrelling money into the reserves earning a pittance in interest. That money could have been working for us and invested in solar PV and make a good return."

She also criticised the proposal to divert £150,000 to revamp the area by the Casson Block instead of tackling poor city centre air quality.