Brighton and Hove City Council has agreed a budget of about £750 million for the coming financial year and a council tax rise of 2.99 per cent.
The council tax bill for a typical band D property will go up to £1,595.45.
Overall, bills will rise by just over 4 per cent to £1,879.03 when the police and fire precepts are included.
Almost three hours of debate at Hove Town Hall ended in stalemate when the three parties were unable to agree.
The minority Labour administration backed a series of Green Party amendments but the Greens then abstained on a motion to pass the budget.
Labour was outvoted by the opposition Conservatives who last week became the largest party on the council and will learn next Tuesday (5 March) whether they will take political charge.
The stalemate ended after three hours of talks outside the council chamber, with a £2.2 million deal thrashed out between Labour and the Greens.
The deal prompted a temporary walk-out by the Tories as they talked through the implications.
The deal means an extra £1.7 million for transport and parks-related spending and £500,000 to be set aside for “sustainability and carbon reduction”.
Some of the spending plans included ideas suggested by the Conservatives, with most of the spending to be financed through extra borrowing.
Council leader Daniel Yates said that the Green amendments improved the budget and added: “It demonstrates that a progressive alliance can deliver better things for this city.”
After the meeting Green convenor Councillor Phélim Mac Cafferty said: “This is the Labour budget. Opposition parties are only granted six amendments to it – and we have fought hard to make sure our communities remain a priority.
“We have pushed to improve the budget being proposed and our work will now see over £12.5 million put back into the council budget, providing serious investment into climate change mitigation, support for the homeless and challenging the plans to reduce funding for some of our most vital public services, such as substance misuse rehab and libraries.
“Once again, Greens assert that prevention is better than cure – cutting public services costs more economically, and socially, than it will ever save in the short term.
“We have shared with the city our approach – and while we cannot rescue this Labour budget, our focus on the value of prevention means that Greens make sound investments without robbing from one service to pay for another.
“Unlike the Tories, who see fit to hand down austerity year upon year, and a divided Labour who have brought forward no new ideas, it is time for a Green vision for the future of our city that puts our communities first.”
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