Council tax bills in England and Wales will rise by an average of four per cent this year, according to figures from the Department for Communities and Local Government.

Official figures showed on Thursday that the average bill would rise from £1,101 to £1,146, with average Band D council tax going from £1,321 to £1,374.

The increase compares to a current inflation rate of 2.5 per cent, according to the consumer price index.

The government said the increase was the lowest for 14 years, with local government minister John Healey claiming that most local authorities "have contained their costs and budgeted prudently".

However, shadow local government secretary Eric Pickles explained households were paying £115 more every month on council tax since Labour came to power in 1997.

"The cost of living is going through the roof under Labour, and this latest round of council tax hikes will mean falling disposable incomes for working families and pensioners," he said.

"Council tax has doubled under Gordon Brown, while local services - from libraries, social services and weekly rubbish collections - have been cut. People are paying more and getting less with Labour."

Local Government Association chairman Sir Simon Milton said that councils "have been under a real financial squeeze during the annual struggle to keep bills down".

"The stark reality is that low council tax rises have come at a cost and many councils have had to make tough decisions on spending," he said.

"Councils that provide social care are facing particular pressures, whilst there are real concerns in district councils about government funding for free national pensioner and disabled bus travel."