Council tax could be raised for the first time in six years in an attempt to close a funding gap of more than £2m.  

The council tax level set by Watford Borough Council has been frozen since 2010/11.

However, according to the latest budget panel report, this is now considered “neither prudent nor sustainable”, and the argument has been made to increase the tax by 2 per cent this year for a Band D property. This equates to an additional £5 per year.

The report reveals there will be a gap in council funding of £2.3m by the 2018/19 financial year, meaning it must develop a strategy to reduce the deficit as government funding is scaled back further.

The strategy outlined for the coming financial year includes further development of the council’s property investment portfolio, and a new transformation and commercialisation programme called Watford 2020.

Heads of service have also been encouraged to find as many efficiency savings and as much additional income as possible.

The latest report comes amid further cuts in government funding, increasing pressure on services and increasing expectations from stakeholders.

Government funding will be cut by 74 per cent this financial year, rising to 95 per cent next year before being slashed completely by 2019.

Last year, the net cost of council services amounted to £15.1m, with a net expenditure of £17.3m, leaving a funding gap of £0.7m.