The majority of Teignbridge residents look set to have an expected council tax rise next year cancelled out thanks to a planned cost-of-living payment to households.

The district council, which receives nine per cent of a household’s total council tax payment, is proposing to increase its portion by 2.99 per cent in the next financial year – an annual rise of £5.54 for a band D property.

However, to help with the cost of living, Teignbridge plans to give all households liable for council tax on their main home a one-off payment of £5.54.

The payment, which will need to be agreed by the council in the new year, would be universal for properties in bands A-H, including those that are on 100 per cent council tax support.

It is estimated this could cost the council in the region of £330,000 plus administration costs.

Councillor Richard Keeling (Lib Dem, Chudleigh), executive member for corporate resources, said: “We’re experiencing a cost-of-living crisis and are aware that any increase in council tax will impact on financial pressures already affecting households across the district.

“We’re therefore seeking residents’ views on a proposal to give households the equivalent band D council tax increase of £5.54 as a one-off cost of living payment.”

The announcement comes as Teignbridge has launched a residents’ survey, asking for views on what its priorities should be for the coming year and where money should be spent.

Cllr Keeling said: “It’s vital that we spend every penny wisely, making sure it goes on services that best serve our residents. We believe our current proposals will help us achieve this, but we’re keen to hear what people think.”

It also seeks people’s views on how best to tackle a future budget gap – estimated to be £3.6 million in 2025/26 – through generating more income, making budget savings, reducing services or increasing council tax further.

The survey runs until 25 January at