Residents in Oldham will pay an extra 1.9 per cent in council tax from April. The rise, which was formally approved by Oldham Council last night, is inclusive of precept contributions to police, fire and waste authorities.

It means the overall bill for an average band D property increase to £1542.84 per year.

Council leader, Howard Sykes, said the rise, which is significantly below inflation, is needed to plug a budget gap of £11m, an increase of £1m following Chadderton Wellbeing Centre budget blunder.

As a result the Lib-Dem administration's budget called 'Investing In The Future - A Budget Ready For Recovery' will see massive spending cuts, including axing 85 jobs at town hall - as further blow to the 5,000 staff who saw 10 per cent of their colleagues leave as part of last year's savings - disposing of unused buildings, and sharing staff, resources and services with neighbouring councils and the NHS.

There will also be investment with £2m spent in 'themed' areas of priority including:

• a clean, safe and green borough - improving street cleanliness and investment in roads, footpaths and potholes; investment in the 'Bloom and Grow' programme; improvements to Oldham's gateways, corridors and local environment, promoting the town centre and Saddleworth as a tourist destination.
• local services for local people - establishing a budget to enable district partnerships to deliver local priorities
• nvesting in front-line services - such as housing stock through a transfer to registered social landlord, new street lighting, supporting regeneration opportunities created by Metrolink.
• quality staff - a Trust Oldham programme with smarter system and procedures, and better partnership working,
• Investing in the future - delivering efficiencies now - improved asset management, free up buildings no longer needed, investment in iconic buildings, technology investment to streamline and improve services, collaborating with other local authorities to share back office services and resources, further develop partnership with Unity to reduce costs, invest in joint-working with the NHS.

During Wednesday's full council meeting the budget came under fire from Labour, whose leader Jim McMahon branded 'weak and calamitous' and proposed an alternative budget which matched the 1.9 per cent interest, cut £15m and invested £3m in new projects.

Oldham's Tories slammed both opposition groups said more could have been done to cut back the tax rise, with leader Jack Hulme claiming now was no time for 'reckless spending'.

With the vote split along party line Mayor Jim McArdle gave the casting vote for the Lib Dem proposals, which took on board some of Labour's ideas.

Cllr Sykes said it was a budget he was proud of.

"This budget continues to take us forward in testing economic times whilst preparing us for the onslaught of government cuts over the next few years, it also cements our progress on delivering for our citizens," he said.

The struggle is far from over in Oldham with a further £35m in savings needed in the next two years.