Spelman: Council tax "will soar"

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.

Local government minister Nick Raynsford said the rises were the lowest in more than 10 years.

"I am very encouraged by today's figures that signify the lowest council tax increases in over 10 years. This follows substantial investment by government," he said.

The minister also said that nine authorities - Aylesbury Vale, Daventry, Hambleton, Huntingdonshire, Mid Bedfordshire, North Dorset, Runnymede, Sedgemoor and South Cambridgeshire - face having their proposed tax rises capped.

"We have made it clear that there is no excuse for excessive council tax increases either this year or in years to come," said Raynsford.

"However, some have not listened and consequently we are also announcing our intention to take capping action against nine authorities this year."

'Soaring bills'

Shadow local government secretary Caroline Spelman said the news meant bills would now reach £100 a month.

"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'," she said.

"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."

Liberal Democrat local government spokesman Edward Davey 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," he said.

"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."

Finance plans

Wednesday's figures also showed that band D properties in shire areas will face bills averaging £1,234 while in metropolitan areas the bill will be £1,190 and in London the charge will be £1,162.

Some 17.6 million properties will provide the tax base for 2005/06 council taxes.

Local authority budget requirements excluding parish precepts are expected to total £70.2bn, with a further £581m likely to be funded from reserves.