Crawley Borough Council has voted to raise its share of council tax and the rents it charges as part of a new budget.
Council rents in the West Sussex district are set to increase by 7.7%, while council tax will be 2.99% higher.
The authority will also use £1.07m from its reserves to balance its budget for 2024/25.
The government said Crawley is due to get an extra £14.5m in funding in the coming financial year.
Crawley Borough Council claims it is facing a homelessness crisis due to the number of private tenants receiving no-fault evictions.
The council tax increase, passed by the Labour-run authority at a budget meeting on Wednesday, will mean an extra £6.76 a year on a Band D property.
‘Realistic funding’
Council leader Michael Jones said the new budget “maintains services despite the limited additional resources we have gained from government to provide everything they ask of us”.
He added: “I will continue to press government for more realistic funding of Crawley Borough Council and ensure we get maximum value for every penny we spend.”
The borough council said it expects to spend £5.25m on housing people made homeless by no-fault evictions.
It has warned that the situation could lead to a housing crisis in the area.
No-fault evictions, also known as Section 21 notices, allow landlords to order tenants to leave with a minimum of two months’ warning.
A Department for Levelling Up, Housing and Communities spokesperson said: “We recognise councils are facing challenges, which is why we recently announced £600m more for councils across England.
“For Crawley Council, this represents an increase of 5.8%, making available a total of £14.5m over the next financial year.”
He said Crawley and the surrounding areas were also being allocated a share of Levelling Up funding “to revive high streets, create jobs, and grow the local economy”.
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