Average council tax bill 'to rise by 3%' - ONS » Local Government » 24dash.com

Official figures are today expected to confirm that council tax will rise by around 3% in England from April to an average of more than £1,400 for a Band D home - adding around £40 a year onto a typical bill.

Ministers have said that this year's rise should be substantially lower than 5% and are threatening to impose a cap on any excessive increases.

With inflation hitting zero by the Retail Price Index (RPI) measure in February, and many households struggling due to the effects of the recession, any increase is certain to be met with anger in some quarters.

But councils will point to the Government's preferred CPI index of inflation, which recorded a surprise hike to 3.2% yesterday and will argue that they are facing pressure from falling revenues just at the time when recession is forcing up demand for social services and housing assistance.

Figures being released by the Office for National Statistics this morning will detail the council tax level for 2009/10 for every local authority, police force and fire service in England.

In a statement to the House of Commons later in the day, local government minister John Healey will name any authorities facing a cap and give them 21 days to reduce their demands or justify the rise they are claiming.

The chairman of the Local Government Association Margaret Eaton said: "Councils understand that people are feeling the effects of recession and they've been working flat out to keep council tax down.

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

"Town halls are having to tighten their belts in exactly the same way as hard-pressed families are. Council income is falling sharply at a time when more and more people are turning to the town hall to help people through tough times.

"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."

Conservatives predict Band D taxpayers in England will be paying an average of £1,414 from April, up 105% from £688 in 1997-8.

Shadow local government secretary Caroline Spelman said: "As hardworking families face pay freezes and redundancies, council tax bills are soaring by yet another £40 this year thanks to Labour, on top of the massive rises which have already taken place since 1997.

"Council tax in England now takes £120 a month from people's pay packets and pensions."

She called on ministers to consider a council tax freeze similar to that imposed in Scotland for 2009/10.

But Mr Healey said that today's rise was expected to be the second lowest ever.

"Council tax increases have been steadily declining since 2003, as a result of year-on-year increases in Government grant and because ministers have used their capping powers to protect council tax-payers from excessive increases and are willing to do so again this year if necessary," he said.

"Local authorities are receiving an extra £8.9 billion from Government and have plans to save £4.9 billion through efficiencies.

"In these tough economic times, council tax-payers rightly expect their councils to deliver good value for money whilst maintaining high quality public services."

Figures released yesterday showed council tax increasing by 4.1% in Wales to £1,086 for an average Band D property.