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 28 August 2008 07:39 BST

Council tax to rise by 4.5 per cent

Monday, 27 Mar 2006 15:46
Council tax to rise by 4.5 per cent

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Council tax bills across the UK are set to rise by more than twice the rate of inflation next month, the government has announced.

The Office of the Deputy Prime Minister (ODPM) revealed today that bills will be increased by an average of 4.5 per cent in 2006/7, with the average bill for a band D dwelling occupied by two adults rising to £1,268.

This increase is above the Local Government Association's (LGA) estimate of four per cent, with the ODPM attributing 0.3 per cent of the increase to the additional levy placed on London bills in order to fund the 2012 Olympics.

Despite this levy, Londoners continue to pay lower rates of council tax than those living elsewhere in the UK, with the average bill for a Band D property in the capital rising to £1,214, compared with £1,237 in other metropolitan areas and £1,290 in shire areas.

Sir Sandy Bruce-Lockhart, chairman of the LGA, insisted that local authorities were doing all they could to keep council tax levels to a minimum and blamed the larger-than-expected increase on central government wastage.

"The council tax rise is higher than councils themselves would want. councils are championing the interests of local residents and are doing everything in their power to keep council tax down," Sir Sandy said.

"Although local government is delivering more efficiency savings than any other part of the public sector this has left very little room for many authorities to manoeuvre between higher council tax and service reductions."

He added: "There is £2.5 billion spent on civil servants issuing directives and guidance, prescribing performance indicators, overseeing bid funding schemes and regulating and inspecting local authorities.

"By cutting down on this bureaucracy, the money could then be ploughed back into front line services or to reduce council tax."

Today's council tax announcement has been met with dismay by old-age campaigners, with Help the Aged spokesperson Adrian Thomas warning that coming on the back of soaring energy bills, the increases could leave many elderly people dangerously stretched financially.

"Yet again hard-pressed pensioners face another year of inflation-busting bills at a time when the cost of living is already spiralling way beyond the annual rise in the state pension," Mr Thomas said.

He also criticised chancellor Gordon Brown for failing to introduce an age-related council tax rebate in last week's Budget.

"On top of rising fuel costs and water rates, this news means yet more misery for poor pensioners already struggling to get by."
The Liberal Democrats have also criticised today's increase, with Andrew Stunell MP calling for council tax to be scrapped.

"Another year, another council tax rise. Council tax continues to soar under Labour, and it's clear they haven't got a clue what to do about it," he said.

"Tinkering with capping will do nothing to help the millions of pensioners and hard working families who struggle to pay their ever-increasing bills.

"Council tax is deeply unfair, and it's time to scrap it, not cap it."track End of story


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