Portsmouth councillors voted to increase council tax by 4.99% at the city's full council meeting this evening [Tuesday 14 February].
The decision will cost the typical Portsmouth household around an extra 91p a week but generate more than £3.3m to go towards funding council services.
Most of the money will go directly to funding adult social care services that help the city's most vulnerable residents, a move the majority of residents supported in the most recent budget consultation.
This follows the government giving council's special powers to increase council tax to support these services, and will help meet increases to costs including the national living wage.
It is only the third time the council has increased its portion of council tax in the last eight years and it was agreed at the same meetings as £9m of savings were finalised for the next financial year.
Like all local authorities, the council is facing further cuts to the money it gets from the government. It has already made £86m of savings over the last six years in addition to the £9m agreed in the coming year's budget.
Cllr Donna Jones, Leader of the council, said: "No one wants to increase council tax if it can be avoided, but unfortunately the financial situation the council is in means we need to generate more money so we can keep services. I'm very grateful to everyone who gave their views on both the budget proposals and council tax increase and it is good to know the majority of residents support what we are doing.
"Most of this money will go towards adult social care and protecting our most vulnerable residents. Without this increase we would have to make greater cuts to services people rely on."