COUNCIL TAX 'BAD NEWS' ON THE WAY

FIRST PUBLISHED BY: THIS IS MONEY 

COUNCIL TAXPAYERS ACROSS BRITAIN ARE BRACED FOR BAD NEWS

The Government gives the first indication of how much their Council Tax bills will rise next year. The Chancellor dished out the lowest increases in a decade before this year, with councils told a cash boost meant they were not allowed to raise bills by more than 3.5%.

But with extra costs having been loaded onto councils by central Government over the past year, slower than expected growth and pressure lower public spending, Council Tax bills are expected to rise considerably this year.

The current average level of Council Tax for a Band D property is £1,214, and the expected increase of £100 will push it through the £1,300 mark. The Treasury will give an indication today of its local government settlement for the coming year. Last month the Local Government Association warned that a £2.2bn black hole across the country would result in a typical £100 increase in bills.

Councils across Britain are angry that they have delivered on targets to cut costs and reduce waste but will be blamed for Council Tax rises. LGA chairman Sir Sandy Bruce-Lockhart told Radio 4's Today programme: 'The Government are offering a 1.5% increase to councils. That really needs to rise to 3% for all authorities, simply to pay for pay and price inflation.'

He added that council leaders had a 'real determination' to keep bills down. Sir Sandy said councils faced huge costs because of new legislation and the changing demographics of the people they served.

He said: 'I think what we are looking for is a package that has some cash, it has the removal of these pressures. I think the most important thing is that we get this money for two years so we can have a two-year deal and we don't have this business of having a row every single year about whose fault it is.'

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