Council tax rise for 4 in 10 households
MORE than four out of ten families will face a council tax increase when new bills arrive at the end of the month, according to an authoritative survey yesterday.
The great majority of town halls have responded to the pleas of ministers and will declare a zero increase, it found.
But rises will be imposed by a handful of big authorities and by a large number of police and fire authorities which can levy tax but face less risk of punishment by voters at the polls.
The survey from the Chartered Institute of Public Finance and Accountancy, the professional body for local government finance, means hopes of a council tax freeze for the second year running will be dashed for nine million households in England.
On average increases will be small – just £4.39 for someone paying the average English benchmark band D bill, which this year has been £1,439.33.
Councils have been considering where to pitch their bills under the threat of new rules which say they must call a referendum if they impose a rise of more than 3.5 per cent.
CIPFA said 85 per cent of authorities will observe the freeze and none of those which put their tax up have gone over the 3.5 per cent limit.
For police and fire authorities, the limit was 4 per cent. The survey found nearly half of police authorities and a third of fire authorities will impose increases. Many parish councils – which in recent years have taken on more duties – have also demanded higher bills.
Communities Secretary Eric Pickles has labelled councils which are imposing increases just below the poll threshold as ‘democracy dodgers’.
Local Government Minister Grant Shapps said: ‘ Council tax doubled under Labour. But this Government is working to freeze it for two years, helping hard-working families and pensioners with their cost of living.’
Ian Carruthers of CIPFA said: ‘ For the most part, councils have responded positively to the Government’s offer of council tax freeze funding. Service and job cuts are likely to continue as councils must balance their budgets.’