Harold residents face an inflation-tripling rise in their council tax this year as funds are ploughed into training and technology for councillors and staff.
But the Labour administration are promising the 9.1 per cent rise - about an extra £1.27 a week on an average bill - will mean smaller rises in years to come.
The soaring rate is the result of a "disappointing" government grant settlement and a higher charge for fire and police services as well as Havering's Labour council's three year "modernisation" strategy.
Those plans include more computers for councillors and staff as well as a bigger training budget to help council staff modernise the system.
Labour councillors say the three year strategy is intended to chop council tax bills to 4.5 per cent next year and to keep it line with the rate of inflation in 2002.
To save money, the council will be looking at ways to axe the number of suppliers used to provide services and "bundle" together large contracts to get a better deal.
Leader of the council Ray Harris said: "The best way forward is to pursue an innovative programme of change.
"Instead of putting our energies into finding ways of cutting year on year we will be working with the local community to develop ways of transforming local services."
But at least some local residents are fuming at the hike.
Karen Inglebrecht from Heaton Close, Harold Hill said: "We are all being stung, this council is bleeding people dry.
''I have got four children and struggle enough as it is without this whopping rise in my council tax.
''After school uniforms and shoes, I can't even afford to send the children to school with a packed lunch."
She added: "We aren't going to get anything back from what we pay in - and we don't even get black rubbish sacks anymore."
Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.
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