Council tax in the borough will be increased for the first time in seven years as the council tries to grapple with a growing financial crisis.

In response to a 66 per cent cut in its central government grant, Richmond Council’s Conservative deputy leader, Councillor Geoffrey Samuel decided to increase tax by the full amount it can, 1.99 per cent, over the next three years.

The opposition Liberal Democrats argued Cllr Samuel did not go far enough, saying a larger increase would go further to avoid cuts to services.

In December the Government announced local authorities would be able to raise tax by 3 per cent over the next two years, if they froze it in the third.

Lib Dem leader Gareth Roberts accused the Conservatives of dishonesty, saying an extra 1 per cent hike would collect almost £2million extra over a year.

It would equate to another 25p per week for a band D property, he said.

Cllr Roberts said: “We don’t know what’s coming around the corner. We don’t know what fresh lunacy will be foisted upon us by the Treasury. We don’t know what’s going to be happening with the Mayor’s precept.

“It makes good, prudent sense to go for the maximum now – only 1 per cent more.

“This is a short-term, populist budget set with an eye on council elections in 2018.”

The council’s only Labour member, Councillor Jennifer Churchill, urged the Conservatives to take the entire 3 per cent hike so the council could “wait and see” whether it could avoid some of the cuts planned for the coming fiscal year.

Since the Conservatives won control of the council in 2010, they have frozen tax each year.

Despite having to make savings, the council protected the budgets for secondary and special educational needs schools, as well as those for highways and adult services.

Cllr Samuel also announced funding for a new consultant who will work with the borough’s teachers to help identify and help children who may be suffering from mental illness.

Cllr Samuel argued his choice was the “prudent one”, saying after the meeting it would be “calamitous” if the borough’s financial position worsened in 2019, when it would have to freeze tax.

Cllr Samuel said: “Adult care is half of our budget. If things didn’t improve and we had to freeze tax in the third year, we would have to cut adult care by £3million. That would be a crisis.

“If the outlook turns out to be better than we think (the Lib Dems) will have been right. But this is an insurance premium.”