MEDWAY council chiefs are set to agree a five per cent hike in council tax bills at a meeting tomorrow.

The rise will see owners of Band D homes pay £1,049.48 for services run by the authority, subject to final approval by all councillors at the budget-setting meeting later this month.

The cabinet will debate how it plans to make savings needed to wipe out a £6.5 million deficit with all departments under scrutiny, including children’s services, waste services and tourism.

The council tax hike and savings will form part of that plan, together with a raft of

fee and charge increases, including rises in the cost of parking tickets, trading licences, taxi licences and library fines.

Deputy council leader Cllr Alan Jarrett (Con), who is also portfolio holder for finance, said the savings plan was a must.

He said: “This plan is a necessity that has been forced upon us because of the funding shortfall by the Government.

“It provides the best possible way of saving money without damaging front-line services.”

Cllr Geoff Juby, Liberal Democrat group leader on Medway Council, said the budget could have implications for jobs, with several posts expected to be lost as part of a Civic Centre shake-up.

He said: “With the present financial settlement I think they have had no choice but to make these cuts.

“We always said the current administration would have financial trouble and now it’s crunch time.”

The budget for 2008-09 goes before the full council on Thursday, February 28.

See Friday’s Medway Messenger for our full budget breakdown.