PEOPLE living in West Berkshire are being told to expect a council tax increase.

West Berkshire Council has announced plans for a 1.99 per cent increase in 2021/22, which means the average Band D household will see their annual bill rise to £1,596.40.

That hike, a £138 million budget for council-run services and a £123 million budget for a three-year infrastructure investment programme (including £12 million for roads) are due to be approved when the council meets on Tuesday, March 2.

The Conservative-run council, which is legally required to balance to books each year, says it must save £3.7 million in 2021/22 but it will not introduce cost-cutting measures that affect the quality of front-line services in West Berkshire.

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However, it is also planning to make three employees redundant.

The council could increase council tax by a total of 5 per cent – but decided it does not need a 3 per cent increase to pay for adult social care.

That is because demand for council-funded care for elderly people has dropped during the Covid-19 pandemic, due to a high number of care home deaths.

It is expecting to end the 2020/21 financial year with a £3 million to spare.

Councillor Ross Mackinnon, executive member for finance, said: “That 3 per cent difference equates to roughly £3 million.

“We’ve got a balancing act to strike between supporting the budget for this year and future years and trying to limit council tax rises as much as possible.

“It is tough for everyone out there and we are pleased to be able to limit it to 1.99 per cent.

“To go further (and freeze council tax) would be to the detriment of the council’s financial position and be a bit too precarious for my liking.”

The Conservative councillor also said plans to save £3.7 million “should not have an effect on the service our residents get”.

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He added: “We never want to spend less on a service, unless we can manage that service better and more efficiently without affecting the service the residents get.”

It has lost out on millions of pounds of revenue during the pandemic, after being forced close car parks and leisure centres and offer council tax and business rates discounts.

However, it has received around £9.5 million of support from the government so far and is expecting another £3.2 million in 2021/22.