Lowest council tax rise in 15 years

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The average Band D bill in 2009/10 will be £1,414, compared to a bill of £1,373 this year.

Overall, the average council tax per dwelling will be £1,175 - a 2.6% rise on the figure for this year of £1,145.

Local Government Minister John Healey said: "Most councils across the country are tightening their belts, which is exactly what the public wants to see.

"With a tough economic year ahead, councils will need to do even more to control costs and I remain ready to be tough with capping powers to protect council taxpayers from excessive increases."

In the light of the figures, the Local Government Association (LGA) urged the Government not to use its powers to cap any councils this year.

LGA chairman Margaret Eaton said: "Town halls are working hard to keep local businesses afloat and to help people deal with the impact of the recession. Many councils revised down council tax rises this year to minimise household costs for residents.

"Given that town halls have made such efforts to keep council tax down this year, we would not expect the Government to cap any councils."

But the Tories said there should be no increases at all at a time when many people are facing wages freezes and RPI inflation has hit zero.

Shadow local government secretary Caroline Spelman said: "At a time when millions of workers are facing pay freezes or unemployment this year, it adds insult to injury to drive up bills by a further £41 a year, on top of previous years' rises."