Residents in East Devon are likely to see their council tax bills rise once again as East Devon District Council (EDDC) attempts to balance its budget.

The council plans to increase its share of the tax by £5 when it finalises its budget for the 2022/2023 financial year, which begins in April.

The 3.3 per cent rise is the maximum yearly rise allowed by the government. It would take the annual payment for a band D property to £156.76. This is separate from the money people pay to Devon County Council, which provides services such as children's and adult social care.

The move, now approved by EDDC's cabinet as part of the draft budget for next year, now goes to a vote at full council as part of the budget-setting process.

The rise, a decision being taken by many local authorities, comes as the council makes tough choices in order to balance its budget.

Speaking at cabinet, Councillor Jack Rowland (Independent East Devon Alliance, Democratic Alliance Group, Seaton), portfolio holder for finance, said: "This administration is having to grasp some really difficult nettles lately due to a number of factors: one, the reducing level of government support for local authorities, the fact that we're limited – without going for a referendum – how much we can increase the council tax precept by…and also the fact that a number of things are coming home to roost in terms of lack of maintenance on our assets over a number of years."

The council will have a better idea of the final shape of its budget in the coming weeks. It is expected that further pressures will be heaped on its finances compared to previous years.

The council is expecting to pay an additional fee of somewhere between £400,000 to £600,000 to keep up with increased demands for recycling collection and additional household collections from new properties in the area.

It is also expected that there will be an increase in payments to LED leisure, a company that runs the council's leisure facilities. The council currently spends around £900,000 on leisure services but LED has suggested that the quality of service might drop if the council does not increase spending. It is believed an additional £50,000 to £100,000 may be spent.

EDDC is also carrying out a review of pay for council employees, expected to conclude in February. Some wages are thought to be behind median pay levels. Rectifying this could cost the council around £300,000 to £500,000.

The provisional local government finance settlement, published by the government in December, only provides councils with a one-year plan for funding. The short-term nature of the plan, EDDC officers argue, "significantly hinders future planning."

When the final settlement is released local authorities can only have certainty in how much government funding they will receive for a 12-month period.