Households in Bexley are set to see a tax hike as the council looks to settle its books for the next year.

Taxpayers will see an increase of five per cent – the most that can be imposed without a referendum – which will include two per cent earmarked for adult social care.

It comes as the council considers plans to save cash from across its service, including how often bins are collected.

Two options were on the table depending on how the council changed bin collections, with a three-weekly collection system delivering more savings so tax could be lower.

A cabinet meeting on Monday was told however that a 2.99 per cent increase would be necessary as budgets had planned for a three-weekly collection system to be put in place, but this is not being taken forward.

Speaking at the meeting, deputy leader Louie French said: “Within the financial plans there are investments set out – these are both financial and moral.

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“Being a Conservative, raising taxes does not come easy to us. But we continue to be a council that doesn’t hide from difficult decisions.”

The council has had to find millions in savings as it works to become “self-sustainable” by 2022 – that means it will be operating without money from the government.

The cabinet agreed plans to save £6m, not including the potential £1.2m that could have been found through further scaling back of waste services.

Population growth and extra pressure on services, paired with a cut in the amount of money the Government gives local councils, means Bexley faces significant challenges in future years.

The council is planning £150m investments in its capital programme, some of which will go towards temporary and affordable housing – a budget that has seen big pressures in recent years with increasing numbers of families becoming homeless.

Alex Sawyer, cabinet member for housing, said: “This area faces significant pressure, and this will be the case for some time to come.

“The capital programme allocates £5m to purchase 17 properties for temporary accommodation on top of the 205 we have purchased so far.

“This may only take the tip off the iceberg, but together with schemes such as ‘rent it right’ and continued representations to the secretary of state, these will assist in providing more properties for those in need.”

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The final sign-off will be at a full council meeting next week, March 5, where councillors will have a last change to table amendments – none of which have come forward in the last few months.

Speaking on Monday, Labour opposition leader Daniel Francis said the government is refusing to fund services for vulnerable people, adding that local government is at “breaking point”.

He said: “All of this is because the policy of this government is to go around publicly saying austerity is over but knowing their policy is to impose council tax increases whilst cutting services to the bone.

“The reality in the figures is that we are funding our revenue budget through tax increases and through our reserves. That is not sustainable. Local government is at breaking point.”