There could have been a year without council tax rises in Medway if the government had not stolen £4.8 million from the community.

That was the claim of the finance portfolio holder, Cllr Alan Jarrett, as his budget for a 4.99 per cent rise was debated by the all-Conservative Cabinet this week.

“The government settlement for Medway is woeful, and the grant is unfair to the extent that I believe it is perverse,” he said.

A system known as damping had taken that money from Medway to fund overspending, under-performing councils in other parts of the country, Cllr Jarrett claimed.

The council had been able to balance the books, despite a projected £14 million deficit, with one-off windfalls but could not do that every year, the meeting heard.

The rise will bring in an extra £4.4 million in the next year.

“The 4.99 per cent is the lowest rate we can possibly set for a sustainable budget going forward,” said Cllr Jarrett.

“People can celebrate: The government says we can spend an extra £4 on each resident. Well I hope they will be eternally grateful to the government!”

Despite all this, he said it was a good news story.

Medway maintained the lowest tax in Kent, and one of the lowest in the country, while maintaining a range of quality services, holding a three star government rating and top ratings for social care for adults.

“To maintain that with low resources is nothing short of miraculous, and therefore a very good budget,” he told the Cabinet.

“A neighbouring borough has said to me that we have lower tax, a better waste collection service and recycling than them, and they said our roads were much better than theirs.”

He warned that because of the recession there had been enormous haemorrhaging in their investment income which helped to fund spending.

Admission prices and other fees would also have to be kept under careful scrutiny.

Price rises were based on best estimates, and some of the income targets might not be achieved.

“It is up to Cabinet to deal with anomalies as they arise,” he said.