THURROCK Council is set to hike council tax by almost five per cent as it battles rising costs and its recovery from financial ruin.

The increase will include a 2.9 per cent increase in the amount levied directly by the council, with an additional two per cent for ringfenced adult social care.

The rise is an improvement on last year's 7.99 per cent and comes as the council says its required savings target for 2025/26 of £18.2million can be achieved within its projected budget.

A report to council says the borough's recovery plan after its catastrophic financial collapse in 2022 is heading in the right direction, but it faces the same financial stresses as other authorities across the country.

They include a rise in the national minimum wage and an increase in employer national insurance contributions. In addition pressures on children's social care budgets continue to increase.

The cost of delivering Thurrock's children's services is expected to rise by 6 per cent 2025/26. In quarter two of the current financial year, there is a projected shortfall of £1.813million on the children's social care placements budget.

Homelessness is also on the rise in Thurrock. Temporary accommodation numbers remained static throughout 2021 to 2023 but the reports shows a "significant upward trend" in 2023/24, which "quickened pace during the first half of 2024/25.

At the end of quarter two this year temporary accommodation is showing a financial pressure of £2.5m over budget with an increase, on average, of 23 extra placements per month. This is expected to continue.

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However, the council is making good progress with the financial targets it must achieve this year. The budget for 2024/25 includes a significant savings target of £19.866m of which 86 per cent is delivered or on track to be delivered.

A cabinet report said: "Delivering a balanced budget for 2024/25 is critical to ensuring the council remains within the agreed budget envelope and that there is no requirement for unplanned call upon reserves whose role is to protect the council's financial standing."

The draft budget will be debated by the corporate overview and scrutiny committee on Tuesday (13 January).