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| Council tax 'set to rise by 4%' | Council tax 'set to rise by 4%' |
| (about 6 hours later) | |
| Council tax bills in England are set to rise by about 4% on average this year, the BBC has learned. | Council tax bills in England are set to rise by about 4% on average this year, the BBC has learned. |
| A Local Government Association study of 100 draft council budgets suggests some councils may put bills up by nearly 5%. | A Local Government Association study of 100 draft council budgets suggests some councils may put bills up by nearly 5%. |
| The projected charge for an average Band D property for 2007-8 will be £1,373, the research suggests. | |
| The Association has warned that many local authorities will still have to ration or cut services despite the increases in tax. | The Association has warned that many local authorities will still have to ration or cut services despite the increases in tax. |
| Ministers say there is "no excuse" for large increases and have threatened to use capping powers. | Ministers say there is "no excuse" for large increases and have threatened to use capping powers. |
| If increases were to continue at such a rate, householders would be paying out £1,500 a year on average by 2011. | If increases were to continue at such a rate, householders would be paying out £1,500 a year on average by 2011. |
| See how council tax has changed | See how council tax has changed |
| A Band D property is one valued as costing between £68,001 and £88,000. | A Band D property is one valued as costing between £68,001 and £88,000. |
| The chairman of the LGA, Sir Simon Milton, said: "No-one likes paying more council tax, but this year town halls are making enormous efforts to keep bills down." | The chairman of the LGA, Sir Simon Milton, said: "No-one likes paying more council tax, but this year town halls are making enormous efforts to keep bills down." |
| But he adds it has been impossible to avoid putting up bills because of the increasing pressure on council budgets. | But he adds it has been impossible to avoid putting up bills because of the increasing pressure on council budgets. |
| We are being asked to do more and more every year by central government with less and less Cllr Ken ThornberryHampshire County Council leader | We are being asked to do more and more every year by central government with less and less Cllr Ken ThornberryHampshire County Council leader |
| "Several government departments are shifting extra costs on to councils while limiting funding from central government," Sir Simon said. | "Several government departments are shifting extra costs on to councils while limiting funding from central government," Sir Simon said. |
| The LGA cites extra cash costs from increased migration, funding free travel for pensioners and the disabled, and increasing social care budgets, due to larger numbers of elderly people. | The LGA cites extra cash costs from increased migration, funding free travel for pensioners and the disabled, and increasing social care budgets, due to larger numbers of elderly people. |
| The cost of dealing with waste is on the up too. | The cost of dealing with waste is on the up too. |
| 'Tight settlement' | 'Tight settlement' |
| In Hampshire, one of the councils where bills will go up by nearly 5%, the authority's leader Cllr Ken Thornberry blames Whitehall for creating the situation. | In Hampshire, one of the councils where bills will go up by nearly 5%, the authority's leader Cllr Ken Thornberry blames Whitehall for creating the situation. |
| "We are being asked to do more and more every year by central government with less and less. The system is not sustainable." | "We are being asked to do more and more every year by central government with less and less. The system is not sustainable." |
| But John Healey, the local government minister, said: "There's no excuse for excessive council tax rises. | But John Healey, the local government minister, said: "There's no excuse for excessive council tax rises. |
| "We expect them to be substantially below 5% this year and we will use the capping powers that we've got to protect local council tax payers." | "We expect them to be substantially below 5% this year and we will use the capping powers that we've got to protect local council tax payers." |
| Council tax has more than doubled since 1997. And some local government experts say the only way to slow the increases is to reform the system radically. | Council tax has more than doubled since 1997. And some local government experts say the only way to slow the increases is to reform the system radically. |
| Polls suggest council tax is the least popular tax | Polls suggest council tax is the least popular tax |
| Chris Leslie, from the New Local Government Network (NLGN), says "council tax is a real burden and it's becoming really unfair and outdated". | Chris Leslie, from the New Local Government Network (NLGN), says "council tax is a real burden and it's becoming really unfair and outdated". |
| The NLGN is calling for a 50% top rate of tax for people on incomes of more than £200,000 a year. | The NLGN is calling for a 50% top rate of tax for people on incomes of more than £200,000 a year. |
| They say it could raise £4bn, which would be used to fund a one-off reduction in council tax, reducing the average Band D bill by £205 a year. | They say it could raise £4bn, which would be used to fund a one-off reduction in council tax, reducing the average Band D bill by £205 a year. |
| The charge would be renamed the "local property levy" and updated according to changing property values every year. | The charge would be renamed the "local property levy" and updated according to changing property values every year. |
| The Conservatives have accused the government of "spin", arguing a 4% increase in council tax would compound previous above-inflation rises. | The Conservatives have accused the government of "spin", arguing a 4% increase in council tax would compound previous above-inflation rises. |
| Shadow local government secretary Eric Pickles said: "Not only will local taxpayers have to fork out an extra £53 in tax from April, but municipal taxes will now grab £115 a month from people's pensions and pay packets. | Shadow local government secretary Eric Pickles said: "Not only will local taxpayers have to fork out an extra £53 in tax from April, but municipal taxes will now grab £115 a month from people's pensions and pay packets. |
| "Gordon Brown's only plan is to hit the public with more tax hikes - with new bin taxes on the way." | "Gordon Brown's only plan is to hit the public with more tax hikes - with new bin taxes on the way." |
| The Liberal Democrats say the expected increase in council tax sits uncomfortably alongside the government's insistence on limiting public sector pay increases to 2%. | The Liberal Democrats say the expected increase in council tax sits uncomfortably alongside the government's insistence on limiting public sector pay increases to 2%. |
| Least popular | Least popular |
| Spokeswoman Julia Goldsworthy said: "This year's tight settlement from the government either means higher council tax bills or cuts to services. | Spokeswoman Julia Goldsworthy said: "This year's tight settlement from the government either means higher council tax bills or cuts to services. |
COUNCIL TAX BANDSBand Property value A Up to £40,000 B £40,001-£52,000 C £52,001-£68,000 D £68,001-£88,000 E £88,001-£120,000 F £120,001-£160,000 G £160,001-£320,000 H £320,001 and up England only. Source: DCLG | COUNCIL TAX BANDSBand Property value A Up to £40,000 B £40,001-£52,000 C £52,001-£68,000 D £68,001-£88,000 E £88,001-£120,000 F £120,001-£160,000 G £160,001-£320,000 H £320,001 and up England only. Source: DCLG |
| "Thousands of people across the country will now feel the pinch as councils are forced to limit social care services to those in critical need." | "Thousands of people across the country will now feel the pinch as councils are forced to limit social care services to those in critical need." |
| The situation in England is not reflected in Scotland, where the Scottish Government sets council tax rates. | The situation in England is not reflected in Scotland, where the Scottish Government sets council tax rates. |
| The SNP's ministers have proposed freezing any increase in council tax, a move that has been backed by the local authority leaders tasked with delivering their plan. | The SNP's ministers have proposed freezing any increase in council tax, a move that has been backed by the local authority leaders tasked with delivering their plan. |
| In Wales, local council leaders have warned that a 2.3% increase in grants from the assembly government will lead to higher council tax bills. | In Wales, local council leaders have warned that a 2.3% increase in grants from the assembly government will lead to higher council tax bills. |
| Polls suggest council tax is the least popular tax - a recent YouGov poll claimed 67% of people think it is unfair. | Polls suggest council tax is the least popular tax - a recent YouGov poll claimed 67% of people think it is unfair. |
| Back to link | Back to link |