Watford’s first council tax increase for seven years will come into effect in the coming months as a result of a new medium term budget being passed by the borough council.

Despite opposition from Labour party members, who called for the tax to be frozen for another year at a meeting of the full council on Tuesday evening, Elected Mayor Dorothy Thornhill argued that the 2 per cent rise was essential to help plug the gap left by ongoing cuts in the government’s revenue support grant.

The increasewill cost a Band D property an extra £5 per year – around 10p a week.

READ MORE: Plans for council tax rise slammed as 'too little too late'

Both parties began the meeting at the Town Hall in a solemn mood, reflecting on the passing of Watford legend Graham Taylor and impeccably observing a minute’s silence in memory of the former England manager, who was made a freeman of the borough in 2001.

However things did not remain amicable for long.

Introducing the budget, Mayor Thornhill said the council was retaining an “ambitious programme” in the face of challenges posed by increased service demands coupled with government cuts.

See how the meeting unfolded here

She cited the opening of hospital link road Thomas Sawyer Way, victory in the Farm Terrace legal battle, and completion of the Meriden Community Centre as particular successes from the last year.

However Councillor Nigel Bell, leader of the Labour Party group, described the mayor’s plans as “another austerity budget”, using as an example the decision to close two popular adventure playgrounds despite considerable opposition from parents, children and play workers, who were made redundant as a result.

He opposed the council tax hike, saying his party “did not want to add to the pressure residents are suffering”.

The strategy outlined in the budget 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.