£60 RISE IN COUNCIL TAX BILLS

First published by: This is Money

Council Tax is set to rise by an average of almost £60.

From April bills will jump 5%, more than double the rate of inflation, to around £1,220 for a typical household. The bulk of the increase - £34 - will go to pay for more police and prepare London for the 2012 Olympics, an Evening Standard survey has found.

The Mayor's demand, which is due to be rubber-stamped by the London Assembly tomorrow, will increase his share of Council Tax by 13.3% to £289. 

By comparison, London's 33 boroughs are seeking an average 2.5% rise. Five councils have announced plans to freeze their share of the bills with local elections less than three months away. Across London, our survey predicts that benchmark band-D bills will add £58 to the current £1,162 average. Last year bills increased by £41. 'My budget gives every neighbourhood in London its own dedicated police team and funds more transport police to keep overground rail stations safer. That will cost the average Londoner just 27p a week.

'My budget also introduces the 38p a week contribution to the costs of the 2012 Olympic and Paralympic Games, which has the support of all major political parties.' Almost two-thirds of the Mayor's extra cash will be spent rolling out neighbourhood police teams to all 625 council wards in London.

The remainder will provide infrastructure for the Olympics and extra transport police for suburban stations. But the Mayor's demands have sparked anger among London boroughs which are obliged to collect-the money on his behalf. Nick Stanton, Southwark's Lib-Dem leader, described the increases as 'outrageous' and said they would cause real pain for thousands of families.

Mr Stanton said: 'We have a lot of 'working poor' in Southwark who don't get much more than the minimum wage but they get absolutely clobbered.' Michael Lavender, Enfield's Tory cabinet member for finance, said: 'It's outrageous that when we are trying to spend less of Council Taxpayers' hard-earned money, seems to be intent on splashing it around like someone who has just won the pools.'

Hackney, Kensington and Chelsea, Lambeth, Richmond and Tower Hamlets want no rise. They may be joined by Islington and Southwark. Councils will ratify their final budgets next month. Kingston looks set to replace Richmond as the capital's most expensive borough. If a 4.5% increase is approved, this would take its band-D bill to £1,459.

Ian Reid, Kingston's executive member for improvement and performance, blamed a lack of government funding for the high bills. Wandsworth will face competition from Westminster to set the capital's lowest bills. Both are keeping their proposals under wraps but they are likely to be around £655 - just over half the London average.

Kensington and Chelsea has announced a two-year freeze, while Newham and Brent have put forward their lowest increases in years. Hammersmith and Fulham - where Labour will face a tough battle to prevent the Tories gaining control in May - announced a 1.5% rise for each of the next three years and 'no nasty shocks'.

Many types of council have been forced to cut services to keep their increases to a minimum.

READ WHAT: ERIC PICKLES ‘SECRETARY OF STATE’ SAYS ABOUT OVER-CHARGED COUNCIL TAX 

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