This rise equates to £4.90 extra per year on a band D dwelling.
The increased precept in 2018/19 will help fund replacement planters around the town, a suitable First World War commemoration and refurbishment work to Robertson’s Fountain.
The budgets for grants to local organisations and for local events will also increase by more than £10,000.
Mayor of Alnwick, Coun Alan Symmonds, said: “Our budgets have been carefully reviewed and in the next financial year we are looking to continue to make improvements in the town centre – last year, we installed the CCTV system and undertook work on the fingerposts.
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“We have also seen increased demand for our help from local organisations and event organisers and as a result, have increased our budgets.”
The total town-council precept for 2018/19 will be £287,175 and the new band D charge is likely to be below the average for town councils in Northumberland.