A DECISION on whether to increase council tax in Colchester next year has been deferred.

Budget papers published by the authority propose a potential 1.95 per cent rise.

This would equate to a £3.42 total rise for a Band D home.

However the budget also considers a freeze as the government has not yet announced how much council's can raise tax before needing a referendum.

The current level is two per cent but borough council officials fear local government minister Eric Pickles may reduce it to 1.5 per cent.

A council tax freeze, which would entitle the authority to a government grant equal to a one per cent rise, would still leave a funding gap of £89,000.

  • Read more on the budget in tomorrow's Gazette.