Council tax bills set to rise 4% - News in brief - Evening Standard
       

Council tax bills set to rise 4%

Local authority leaders have renewed warnings of service cuts as a survey confirmed council tax bills are set to rise by around 4%.

Research by public accountancy institute Cipfa found the average Band D home would face a £52 a year increase to £1,370.

It said the 3.9% figure, revealed in the survey carried out for The Times and BBC Radio 4's Today programme, was the lowest for 14 years.

But the Local Government Association said it had only been kept that low through "difficult decisions" over services and demanded a funding reform to recognise modern budget pressures.

Chairman Sir Simon Milton said: "It is a testament to the determination of councils that the average rise is likely to be close to the rate of inflation.

"Keeping council tax down has been made harder by several government departments shifting extra costs on to councils whilst limiting funding from central government to a real terms 1% increase.

"Council tax would have been a lot lower with a more realistic central government grant. The toughest financial settlement in a decade has left councils with difficult decisions to make locally."

Ministers have threatened to use capping powers against councils imposing "excessive" rises over the Government's 5% ceiling and insist town halls were given a "fair and affordable" financial settlement.

Local Government Minister John Healey said: "Councils have until early next month to set their budgets, and we will publish final figures in due course. But there is no excuse for excessive council tax increases, and we have made clear that we will apply our capping powers to all types of local authority to protect council taxpayers where necessary."

Shadow local government secretary Eric Pickles said: "Labour's yearly farce of council tax increases well above inflation is inflicted on a public already struggling with rising water, gas, electricity bills. It is shocking that council tax has doubled in 10 years of this Labour Government."

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