4.1% council tax rise announced

Council tax rises in England next year will be the lowest in over a decade, Local Government Minister Nick Raynsford has announced.

According to new figures from the Office of the Deputy Prime Minister (ODPM), the average Band D increase in England will be 4.1% – representing a rise of £47 from £1,167 to £1,214 for the whole year.

Commenting on the new figures, Mr Raynsford said: "I am very encouraged by today's figures that signify the lowest council tax increases in over 10 years. This follows substantial investment by Government. We have provided an extra £3.5billion in 05/06 - 6.3% more than in 04/05."

However, nine local authorities – Aylesbury Vale, Daventry, Hambleton, Huntingdonshire, Mid Befordshire, North Dorset, Runnymede, Sedgemoor and South Cambridgeshire – all face capping action for setting excessive council tax increases.

Mr Raynsford said: "We have made it clear that there is no excuse for excessive council tax increases either this year or in years to come. The vast majority of local authorities have heeded these warnings. However, some have not listened and consequently we are also announcing our intention to take capping action against these authorities this year."

The Conservatives say that the new council tax rise represents an increase of 76% since Labour came to power in 1997. Caroline Spelman, Shadow Secretary for Local and Develoved Government, said: "It's official - hardworking families and pensioners are now paying over £100 a month in council tax under Mr Blair."

"Across the country, bills have soared by 76% since Labour came to power, despite Mr Blair's promise that he had 'no plans to increase tax at all'. Council tax has become Labour's favoured stealth tax - with local councillors taking the blame when bills hit the doorstep."

The Liberal Democrats Edward Davey commented: "Council Tax has become an unbearable burden for millions of families, with average bills now a staggering £1,009."

"This is the tip of the iceberg. Labour and Tory plans for revaluation will see bills rocket again after the election, with homes moved into higher tax bands, meaning hundreds of pounds extra."

"Instead of struggling to pay a £1,000 Council Tax bill, under Liberal Democrat proposals of Local Income Tax the average family would be £450 a year better off."

(KMcA/SP)