Council tax goes up 2pc

It means an average Band D property owner will pay about £25 extra on their annual bill, with the percentage rise expected to be the lowest in the Black Country.

Leaders today said it was the lowest rise since the council was set up 35 years ago and pledged it would not mean sacrificing services and insisted major council job cuts were not on the cards.

The rise will be agreed as part of the new budget, set to be nodded through by the council's ruling cabinet next Wednesday.

The budget plan will also see an extra £1m emergency pot being put aside as a contingency measure during the recession, while £200,000 a year will also be spent to help residents with debt advice.

Chiefs will also formally back moves to abolish business rate payments for charities in the borough.

Sandwell Council finance chief Councillor Steve Eling said the low tax rise was not a "gimmick" but was part of a sustainable and efficient budget.

"People are suffering during these economic times and there is always a balance to be struck in terms of achieving efficiencies, investing in services and what the bills end up being," he said.

"Given the current economic conditions we have looked at bringing it in as low as we possibly can and that also means making sure the budget is sustainable."

Council leader Councillor Bill Thomas added: "This rise will be one of the lowest in the country and it is the lowest set by Sandwell in its 35 year history."