Council tax bills on the up

4 per cent average increase for this financial year

The average council tax bill in England and Wales is set to increase by some 4 per cent over the 2008-2009 financial year.

According to the Department for Communities and Local Government (CLG) this represents the lowest increase in the tax for some 14 years.

Government figures show, while the average Band D increase in England will be 4 per cent, some 265 (58 per cent) authorities will have increases below the 4.1 per cent Retail Price Index (RPI).

Furthermore, 69 local authorities (15 per cent) will see increases below the 2.5 per cent Consumer Price Index (CPI), 18 (4 per cent) have no increase and three (0.66 per cent) are reducing council tax bills.

"We have delivered the first ever three year financial settlement for local government, and are moving over £5bn into budgets with no spending strings attached placing financial decisions increasingly in their own hands, and the vast majority have responded well," explained minister for local government, John Healey.

"Our commitment to take action combined with our 45 per cent above inflation increase in government grant for local services up to 2010-2011 has helped bring down council tax rises to a fourteen year low, and most councils have contained their costs and budgeted prudently."

However, despite government optimism, council tax levels have been continued to increase in recent years, peaking with a 12.9 per cent jump in 2003-2004.
Just nine years ago, in 1999-2000, the average band D charge in England was just £798.

Following the increase the average bill for a band D house will increase from £1,321 to £1,374 a year.