Corby’s council tax could rise by 2.7 per cent under new proposals laid out by the Labour-led authority.
The council is set to recommend consulting on the increase – which equates to £5 a year – at a meeting on Tuesday (November 28).
The increase is the highest tax rise a council can impose without the need for a referendum.
But there is good news for those living in council-owned properties, as their rent could be lowered by one per cent.
A report set to be discussed by councillors said: “Our Band D equivalent proportion of the Council Tax is £184.50 per annum, or £3.55 per week.
“A £5 increase would increase this amount to approximately £3.65 per week.
“The overall impact will depend upon the increases made by the county, the police and parish councils, since the Corby element accounts for only 12 per cent of the total bill.
“Just over half of Corby residents live in Band A properties and nearly three-quarters live in either Band A or Band B properties, so the average council tax for Corby is likely to continue to be the second lowest district council in the county for 2018/19.”
The current average rent for Corby tenants is about £80 per week – the lowest in the county.
The proposed council tax increase and rent decrease will be subject to public consultation in December and January.
The council tax increase will bring in about an extra £90,000 in income to the council.
The council is budgeting to have £9m in reserves, which it says is a significant achievement.
But the report warned that some services may have to be cut in the future because of financial uncertainties.
It said: “For future years the financial situation remains uncertain and it is widely accepted that we may have to stop providing the level and range of services that we currently do.
“Consideration therefore also needs to be given to which services will be given the most priority in respect of this.”
Corby Council is the first to show its hand when it comes to council tax rates for 2018/19 in the north of the county.
If the increase is approved, it would be the second £5 increase in succession.
Kettering Council was the only council to freeze its portion of the council tax.