Council tax bills
Average council tax bills are set to rise by 4.1 per cent from April, official figures have confirmed.
Statistics covering local taxes in England for 2005/06 revealed that a band D property occupied by two adults would be hit by a bill of £1,214 compared with £1,167 this year.
The average council tax per property will be £1,009 in 2005/06, compared with £967 in 2004/05, an increase of 4.3 per cent.
Government Response: Office of the Deputy Prime Minister
Nick Raynsford, local government minister, said: "I am very encouraged by today's figures that signify the lowest council tax increases in over 10 years. This follows substantial investment by the government. We have provided an extra £3.5bn in 05/06 - 6.3 per cent more than in 04/05."
"We have made it clear that there is no excuse for excessive council tax increases either this year or in years to come. The vast majority of local authorities have heeded these warnings.
"I am pleased to say that none of the authorities against which we took capping action in 04/05 have set an excessive budget in 05/06. This, and the fact that the average council tax increase in 05/06 is the lowest in more than a decade, shows that - although we have used it only reluctantly - capping has been effective in restraining council tax increases.
"However, some have not listened and consequently we are also announcing our intention to take capping action against nine authorities this year."
Party Response: Conservative
Caroline Spelman, shadow secretary of state for local and devolved government, said: "It’s official – hard-working families and pensioners are now paying over £100 a month in council tax under Mr Blair.
"Across the country, bills have soared by 76 per cent since Labour came to power, despite Mr Blair’s promise that he had ‘no plans to increase tax at all’. Council tax has become Labour’s favoured stealth tax – with local councillors taking the blame when bills hit the doorstep.
"Yet in any Labour third term council tax bills will soar even more, due to fiddled funding, a rigged revaluation and new council tax bands, with a typical bill likely to hit £2,000 by the end of a third term.
"People face a clear choice at the election - higher taxes and more waste with Mr Blair, or lower taxes and better services from Conservatives."
Party Response: Liberal Democrats
Edward Davey, local government spokesman, said: "Council tax has become an unbearable burden for millions of families.
"This is the tip of the iceberg. Labour and Tory plans for revaluation will see bills rocket again after the election, with homes moved into higher tax bands, meaning hundreds of pounds extra.
"Instead of struggling to pay a £1,000 council tax bill, under Liberal Democrat proposals of local income tax the average family would be £450 a year better off."
Stakeholder Response: Age Concern
Gordon Lishman, director general of Age Concern, said: "These council tax increases will cause misery for millions and pensioners are set to suffer once again. It's scandalous that the basic state pension is rising by just £2.45 yet the average council tax bill is set to soar by £47.
"The £200 promised to the over 65s in last week's Budget will ease the strain for many but bills have soared in recent years and a long-term solution to the problem is desperately needed. Older people want to know that they have money in their pockets to pay their rising bills - they don't want to rely on one-off payments.
"The government must replace council tax with a fairer system which is linked to people's ability to pay and deliver a higher basic state pension of at least £109 per week to all pensioners.
"Benefits such as pension credit and council tax benefit are available to help pensioners struggling to make ends meet. But the numbers not claiming are staggering. Up to 1.8 million older people are still missing out on up to £870m of council tax benefit each year - putting in a claim could cut the average pensioner's bill by £470 a year."
Stakeholder Response: Local Government Information Unit
"Capping remains a crude instrument based on dubious criteria. Some councils, often with their reserves depleted and with no record of high spending, get caught simply because their council tax increase is inflated by factors such as changes in government grant distribution, rising costs and new obligations imposed, but not fully funded, by Whitehall.
"This situation is largely a consequence of local government's present reliance on
"There is mounting public concern about what will happen to council tax bills from 2007 if the present property revaluation is not followed swiftly by radical reform from Sir Michael Lyons' review into the balance of local government funding. This review must aim at making the council tax fairer, perhaps with extra bands at the top and bottom of the system and regional banding; and to relieve some of the pressure that has accumulated upon domestic council taxpayers by having most revenue raised locally from a broader range of sources.
"Another merit of such reforms is that they should relieve ministers of their annual dilemma over capping and allow local government to operate according to local priorities, subject to local accountability. There would also be no further need for 'one off' emergency measures to top up
"If ministers feel able to reassure council taxpayers about what the next few years has in store, an early statement of intent on what ministers want to come out of the
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