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South bears the brunt of huge rise in council tax

Daily Mail - 2 March 2004

COUNCIL tax bills up by more than five times the rate of inflation will be sent out to millions of homeowners next month, it was revealed yesterday.Southern England will bear the brunt, with an average demand of more than Pounds 1,000 a year.But for the second year running, rises across much of the largely Labour-voting North will be much lower.

Bills will go up by an average 6.9 per cent in the South East and 7.1 per cent in the East of England, according to an analysis by local government accountants. Inflation is running at 1.4 per cent. But the South West, where huge rises last year provoked pensioner protests, will again be hardest hit. Council tax payers there, who include a high proportion of elderly, will face a 7.6 per cent hike to push the average bill up by Pounds 71.15 to Pounds 1,008.81.
In the North West, bills will be up by only 5.1 per cent in cash terms just Pounds 43.01, which is little more than half the increase in the South West.

In the Labour heartlands of the North East, the average rise will be Pounds 48.53 to Pounds 849.63.
In Wales, bills will be up by only Pounds 35.96. The rises projected by the Chartered Institute of Public Finance and Accountancy, which has a strong record of accuracy prompted fresh anger from protesters.

Christine Melsom, of the Is It Fair? campaign, said: 'If council tax keeps on going up in this way, in seven years' time it will take every penny of the state pension.

'This is more than twice the 2.8 per cent rise I will get in my state pension. It means I am going to have to pay the increase out of my savings.'

She added: 'There are people in the North who have big rises in the past there have been heavy increases in Cumbria and Yorkshire.

'It is the people in the cities and urban districts who are getting it easy with much lower rises.' Tory local government spokesman David Curry said: 'After all the huffing and puffing we have seen from Labour, with councils threatened by letter and in person with capping, we still see council tax increases of several times inflation. The Government cannot escape the charge that it has placed massive burdens on councils and fiddled the funding.' The analysis was confirmed by council tax minister Nick Raynsford, who gave Labour Party figures which showed that across the country the average rise for a ' benchmark' Band D property will be six per cent.
Mr Raynsford now has the problem of deciding whether to go ahead with capping the spending of authorities which push bills up by more than five per cent.

More than 50 have been threatened, but the Minister said many had responded to pressure to keep bills down.
He said Labour councils would raise Band D bills by an average 4.8 per cent, Tory councils by 5.5 per cent and Liberal Democrats by 6.2 per cent. Labour councils had not benefited from higher Treasury grants, he insisted.
Mr Raynsford added: ' Government will use its capping powers if necessary, where authorities impose unreasonable burdens on council tax payers. No decisions will be made until we have seen all the returns.' CIPFA said four regions the South East, the South West, Greater London and East of England will charge average bills of over Pounds 1,000.

The North East average will be Pounds 849.63, the North West Pounds 883.06 and Wales Pounds 717.97.
Across England as a whole, CIPFA said the Band D bills will go up by an average six per cent, to Pounds 1,167.92.

The lowest Band D increase will be in the North West, at 4.8 per cent. In the South West, it will go up 6.6 per cent. The CIPFA figures also show that the average council tax bill will have risen by 72 per cent since Labour came to power in 1997.

Ministers tried to defuse protests yesterday by urging pensioners to claim meanstested welfare payments.
Work and pensions minister Chris Pond said: 'Pensioners have worked hard all their lives and contributed to the prosperity of this country.
'My message is, don't be too proud to claim.' But campaigners, who called the advice ' patronising', said the benefits system was too complex and penalised those with savings.
Mrs Melsom said: ' Meanstested benefits are not paid to people who have savings.
This punishes people who have saved for their retirement, while those who never bothered to save a penny get every benefit going.' Albert Venison, of the Devon Pensioners' Action Forum which has led nonpayment protests in the county warned: 'We will just do what we did last year only pay an increase in line with inflation.' More than 600 Devon pensioners are still refusing to pay their full bills from 2003.
Mr Venison said: 'I owe Pounds 200.'

© Daily Mail

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