Council tax to rise by up to 3% despite below zero inflation

Published 27th Nov 2009

Council tax bills are set to rise by up to 3 per cent next year despite inflation being below zero.

Town halls were ordered to keep increases down to help hard-pressed families suffering during the recession.

But ministers said yesterday that a 3 per cent rise was acceptable.

That is equivalent to an increase of nearly £50 for the average band D household, which will face a bill of £1,456.

Inflation stands at minus 0.8 per cent, according to the Retail Price Index.

The Conservatives have pledged to follow Scotland's example and impose a council tax freeze if they come to power.

Local government spokesman Caroline Spelman said: 'Even a 3 per cent rise compounds previous hikes and will add £42 to the bill for a Band D home, taking bills close to the £1,500 a year mark.

'From April, hard-working families and pensioners in England face council tax demands of £120 a month thanks to Gordon Brown.'

Council tax has more than doubled since Labour came to power. In 1997, the average band D household paid £688. Now the figure is £1,414 - up almost 110 per cent.

Local Government minister Barbara Follett announced yesterday that Whitehall would give councils £76.3billion next year in the hope of keeping council tax rises at their lowest for 16 years.

She said the Government was prepared to impose a cap on any councils which tried to introduce 'excessive' rises.

Matthew Elliott, chief executive of the TaxPayers' Alliance, said: 'Councils have ramped up tax rates a huge amount in recent years, so they should be looking to spend their existing budgets better rather than forcing people to pay even more.'

Margaret Eaton, chairman of the Local Government Association, which represents councils, said red tape meant bills had to rise.

She said: 'This is taking resources away from frontline services.'

Source: ' Daily Mail '

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