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Gravesham councillors are to raise council tax by 3.48% in a move set to bring them into direct conflict with the government.
A formal announcement is expected this afternoon from the council leader, Cllr John Burden (Lab).
It follows an 11% cut in government grants that has sliced another £748,000 off Gravesham's spending power.
The 3.48% increase in Gravesham tax will add £5.76 a year to the total bill for all public services in the borough.
Local Govenment Secretary Eric Pickles has said council are morally bound to freeze tax because he is giving them additional money.
Cllr Burden said there were no guarantees the cash would be there in future years. It would delay service cuts but mean bigger ones in a year.
To save money, several staff have been made redundant, the number of directors has been cut and several job-sharing operations have been developed with other councils.
They include their chief executive who splits his time with neighbouring Tonbridge and Malling.
In addition, parking charges have been increased and introduced on Saturdays, where previously it was free.
A final decision on council tax levels will be made in Gravesend on February 21.