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COUNCIL TAX RISES DOUBLE INFLATION'
Independent - 2 March 2004
By: BEN RUSSELL POLITICAL CORRESPONDENT
MILLIONS OF people face council tax rises of more than twice the rate
of inflation, according to figures released yesterday.
Average council tax bills will increase by six per cent this year, according
to a survey by the Chartered Institute of Public Finance and Accountancy.
Nick Raynsford, the Local Government minister, welcomed the figure, which
is less than half last year's increase of 12.9 per cent, but warned that
capping was likely if councils refused to cut excessive increases by the
11 March deadline to finalise budgets.
The survey, which was carried out for the BBC, found that council tax
bills for average band D properties in England would increase from pounds
1,101.75 to pounds 1,167.92. Across Great Britain the council tax rise
is likely to show an average band D rise of 5.7 per cent, the lowest rise
for nine years.
Mr Raynsford said Labour authorities had imposed the lowest increases
in council tax, at an average of 4.8 per cent. He said: "There is
no need for excessive council tax rises and I hope that the actual average
will come down as authorities finalise their figures."
Mr Raynsford highlighted large proposed increases by four authorities,
including Dover, Medway and the Liberal Democrat-controlled Shepway District
Council, which is proposing to increase its part of the local council
tax by 39 per cent.
David Curry, the shadow Local Government minister, said: "The Government
has placed massive burdens on councils and fiddled the funding. Councils
have no choice but to cut services or go to the council-tax payer for
more money."
© The Independent
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