Council tax in Camden is set to rise by an extra 1 per cent – on top of the previously planned 3.99pc increase.

Cabinet last night agreed to revise the extent of the hike because of a decision by central government to permit the social care precept to increase by 3pc.

General council tax is also rising by 1.99pc, the most it can legally be increased without the need of a referendum.

The plan must now be passed by the full council, which will consider it on Monday. If they do, it will come into effect in April.

The council said the rise was primarily down to a combination of necessary budget cuts (£78million between 2015 and 2019) prompted by central government and “spending pressures” from a growing and ageing population.

Councillor Theo Blackwell, cabinet member for finance, technology and growth, said the increase works at around £1 more a week per household

He added: “During and after the recession caused by the banking crash, the Town Hall protected residents from council tax rises and balanced the books despite huge government cuts.

“Like other councils, seven years of continuous government funding cuts, more government regulation, people living longer and the costs of dementia places huge demand on our care services.

“The government has left us with no option but to propose this increase so that we can continue to provide care services for those who need them.”

To balance its budget for 2017/18, the council estimates it needs £100,631,908 – the equivalent of a yearly council tax of £1,137.44 for Band D properties.