Members of the full council rubber-stamped the increase at a meeting in South Shields Town Hall yesterday.

The lower-than-expected increase follows a Government U-turn.

Originally the local authority had been directed to increase rents by 6.2 per cent, but after the economic recession hit hard that demand was withdrawn.

The 3.1 per cent hike will mean an average rent of £56.86 – a rise of £1.71 a week. The increase will be introduced next month and will be backdated to April.

Coun Jane Branley, leader of the Independent Alliance, said the about-turn was merely an attempt to "soften the pill for council house tenants" in a bid to win votes at a forthcoming general election.

Labour's Coun Jim Sewell said that without representations made to the Government by South Tyneside Homes and the council the reduction would not have been achieved.

But Coun Ahmed Khan, deputy leader of the Independent Alliance, said the U-turn was achieved through combined pressure from local authorities throughout the country.

Meanwhile, peace appeared to have been declared in the council chamber.

A week earlier a meeting of South Tyneside Council was abandoned amid acrimonious scenes, claims of a racist comment and an assault allegation.

But at a reconvened gathering yesterday tempers were kept mostly in check.

And at the meeting's end the borough's Mayor, Coun John Anglin, congratulated all councillors on their "exemplary behaviour".