Petersfield Town Council is out the starting blocks as the first local council to announce it’s increasing its share of council tax for the coming year.

The hike of 4.96 per cent, an extra £7.93 for a Band D property, was approved at the full council meeting on Thursday night (January 19).

Members heard at the meeting in the town hall council chamber the increase will generate £964,619 for the council.

But the meeting also agreed the budget for the year from April would be £1,539,530 for running costs and £854,000 for capital costs, giving a total spend of £2,393,530.

To make up some of the £1,428,911 shortfall between council tax income and spend it was agreed that £820,000 should be taken from the council’s investments.

This money will be spent on creating more pitches at Penns Place costing £120,000 and for progressing the Festival Hall refurbishment at a price of £700,000 – bringing the spend so far on planning the refurbishment to more than £1.5m.

The cost of the actual work to carry out the ambitious project was previously estimated at about £13m, but that was before prices rose thanks to the cost of living rise, and higher inflation.

Members also heard the Finance and General Purposes committee recommended that £770,371 from the running costs figure is set aside to pay staff, this includes a six per cent pay increase for the coming year.

In his report council clerk Neil Hitch said that the proposed post of deputy clerk included in the staff costs should be put on hold as unaffordable just now, saving £35,800.