CHIPPENHAM town council looks set to eat into its £1.6m reserves despite councillors recommending a 1.75 per cent increase in council tax for the upcoming financial year.

Anything less than an eight per cent increase would see the budget needing additional funds.

The 1.75 per cent rise will leave a £103,175 shortfall in the town council’s budget which will be made up internally using council’s reserves.

An additional £240,000 will be taken from the reserves to fund projects put forward by the Amenities, Culture and Leisure committee as well as £20,000 for elections, £20,000 for a neighbourhood plan and £23,000 for improving the Neeld Community and Arts Centre.

Council leader Desna Allen had the casting vote on the recommendation after a tie at Wednesday night’s meeting of the Strategy and Resources committee.

With the council’s reserves around £1m above the level required by auditors for a budget of their size, some councillors argued for freeze on council tax to be funded entirely by the reserves.

Coun Linda Packard said: “We should not be putting up the precept unnecessarily. I would propose zero per cent and we should take money from reserves.”

The council is set to spend an extra £96,013 in 2016/17 on higher salaries for staff, higher pension contributions and two additional part time staff members within the Neeld Community and Arts Centre.

Meanwhile, money received by Wiltshire Council is set to fall by £72,318 down to just £15,874.

The recommendation will be made to full council who will have to ratify the decision in the New Year.