Council tax in Islington will be increased by the maximum allowed in an effort to help plug an almost £20 million gap in its finances.

A core hike of 2.99% has been proposed by the authority for its share of council tax over the next financial year, with an extra 2% increase to help fund adult social care.

The increase would add £1.32 per week to the average Band D household's bill, or more than £68 over the year from April.

Any further uptick in council tax would force a referendum on the issue, something Islington Council has ruled out.

Savings worth £10.8 million will also be made to ensure a balanced budget.

Budget papers claim that for the average (Band D) property the proposed tax increase equates to an increase of around £1.32 per week for full council taxpayers.

Currently, the Islington charge for these residents is £1,380.25 a year, with the total tax burden amounting to £1,814.39 once the Greater London Authority (GLA) charge is added.

These same residents will pay Islington £1,449.13 next year, while the GLA element is yet to be set out.

The council has said that the measures are necessary amid Government funding cuts, inflation and “spiralling demand for services”.

Deputy leader Cllr Diarmaid Ward said local government cuts have had a “devastating” effect on council budgets, but that frontline services would be protected.

He estimated that since the Conservatives took power in 2010, the council’s spending power to pay for local services has been slashed by almost half.

Islington Council has now urged the Government to increase local authority funding, make it easier for councils to borrow money to build council homes and to overhaul the adult social care system.

Cllr Ward said: “Without significant change and investment, we will face very difficult decisions about local services in the years ahead. 

“Years of underfunding cannot continue without impacts on the front line.” 

He added: "For the moment I’ll keep on making the point to the government we currently have about our three asks.

"But every single time I manage to collar a member of the Labour front bench I make this point again and again and again."

Savings in the budget will come from measures such as a voluntary redundancy scheme and the scrapping of free residential green garden waste collection in favour of an annual charge.

Almost £2 million worth of savings will be made within the adult social care system, including through the introduction of a seven day home care ‘recovery model’.

The scheme - called 'Take Home and Settle' - will see patients being assessed by social care workers at home, in some cases allowing hospitals to discharge them earlier on.  

Islington Council says that this supports its "commitment to strengths-based care" while making "best possible use of the council’s resources", delivering savings. 

The authority estimates that the cost of adult social care in the borough is currently increasing by about £20 million each year. 

Cllr Ward said: “The reason that we’re still here and we’re still delivering services and we haven’t got into the serious trouble that other boroughs have got into is because every year we sit down and make these savings.

"That’s our job to make sure that the budget does actually balance every single year and every year we sit down and make those efficiencies."

Meanwhile, the authority has committed to delivering 750 new council homes, introducing new school streets and low-traffic neighbourhoods, as well as protecting a £500,000 investment to tackle youth violence.

The draft budget proposals will be set out at the council’s executive meeting next Thursday (January 11).

Residents and business rate payers will be invited to comment, and final proposals will be considered by full council on February 29. 

A Department for Levelling Up, Housing and Communities spokesperson said: “Councils are ultimately responsible for their own finances, but we remain ready to talk to any concerned about its financial position.

 “We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, alongside our combined efforts to level up.”