27/03/2006

Council tax bills to increase by 4.5%

Council tax bills in England are set to increase by an average of 4.5% this year.

The increase will mean that the average council tax per home will increase to £1,056 from £1,009, while the average band D bill will increase to £1,214.

An extra charge on Londoners in order to pay for the 2012 Olympics has contributed to the rise, the government said.

Local government minister Phil Woolas is expected to make an announcement regarding the capping of council tax rises in some areas of the country.

Pensioners groups have criticised the government for not providing another council tax rebate in this year's Budget. Age Concern said that pensioners would be "furious" about the rises. The charity's Director General Gordon Lishman said: "The Chancellor's refusal to give any extra help to pensioners in the Budget this year has only exacerbated the problem."

Commenting on the figures, Conservative local government spokesman Caroline Spelman said: "Council tax in England has gone up 84% under Labour. Hard working families and pensioners are being hit right in the pocket by Labour's tax hikes and have to face the prospect of ever-increasing council tax bills year on year.

"It's understandable that people resent these huge rises - the typical household now pays over £100 a month. Many are already struggling to pay their bills and are worried about further increases to come when Mr Prescott's looming revaluation comes into force."

(KMcA/SP)

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