Tax payers in Shrewsbury will face a three per cent hike to pay for borough council services next year after councillors last night agreed to the rise.

At last night’s full meeting of Shrewsbury and Atcham Borough Council, members gave their backing for the target council tax rise to be set at three per cent for the borough section of the bill.

Fears had been raised it would rise by up to five per cent but council leader Peter Nutting wants officers to find ways to keep it lower.

During the budgets item councillors also resolved to make cash available within the budgets for small and large capital schemes and agreed to produce a budget only to April 1, 2009 – assuming a unitary authority will be in place after that date.

A report to councillors had proposed money being allocated for several schemes under £100,000 as well as a request to increase the total sum to be provided for such schemes to £850,000 for contingency purposes.

They were also asked to provide money to celebrate the 200th anniversary of the birth of Shrewsbury-born naturalist Charles Darwin and match-funding for a new community centre for the Meole Estate.

Councillor Nutting said: “I accept that the unitary council is likely to be in place by April 2009 and so we are going through a tidy up of our back yard and these schemes are by and large doing that.”

Some councillors last night claimed the money would be better spent on providing more affordable housing for people in the area and put forward an amendment, but it was later rejected.