Residents of Totnes face a 10 per cent increase in the amount they pay for the town council’s services.

The council has agreed to raise its precept by 10 per cent from April 1, meaning that it will receive £600,584.60, up from £545,986 on the current year.

The tax increase means the average band D household will pay an extra £18.65 per year for the council’s services, bringing the total annual payment to £205.22.

Councillors reviewed possible rises in their share of the precept ranging from no increase up to a 20 per cent hike.

Mayor Cllr Emily Price said: “My personal view is that we can’t have no increase because of the ridiculously spiralling inflation.

“We certainly can’t have a 20 per cent increase because of the ridiculously spiralling inflation and the increase costs that everyone is incurring.”

Cllr Jacqi Hodgson proposed a 10 per cent increase, which equates to £1.55 a month for a Band D property.

“I know we can’t just say it’s less than a cup of coffee because for some people that actually is quite significant - people are really on the edge - but we’ve got to keep what we’re doing here going because public services are very good value.

“If we are not careful we end up minimising and then everybody suffers.”

She added: “Last year we didn’t raise the precept at all. It’s not to anybody’s benefit if we don’t at least keep up with inflation, because it’s just a spiral down.”

Town clerk Catherine Marlton said the council’s reserves look healthy enough for the coming year but beyond that – with rising inflation and utility bills – a future town council may have to hike the precept “just to keep the lights on.”

The council’s reserves at the start of 2022/23 stand at £705,308. Based on the current draft budget, the total estimated reserves at the end of this period are expected to drop to £531,821.

These are expected to drop even further to £345,166 at the end of 2023/24, the clerk’s budget report to the town council revealed. The minimum reserve level for a town council of this size is £250,000.

Cllr Sarah Collinson said a 10 per cent rise is in line with inflation and that households struggling the most to pay the increase would receive council tax support.

Cllr Ben Piper warned: “To cut our fiscal policy adrift by reducing the amount that is coming in, in the face of an onslaught of inflation and everything else, would be foolishness.”

Cllr Georgina Allen blamed the government for slashing the financial support it gives to local councils around the UK.

She said: “Support for the town has shrunk in terms of district and central government.

“We have to step up we can’t let things sink.”

Cllr Tim Bennett agreed the council has no choice but to raise its council tax: “No increase looks pretty bleak to the point where is there even a town council at that point? We don’t really have a choice here.”