Opposition parties will target tax rises in election campaigns

The bill for the average band B and D household in England will rise by 12.9% - that is �126 to �1,102.

With the local council elections looming in May, the Conservatives say the rises are part of the way the government is unfairly bumping up taxes.

Ministers have hinted they might cap "unreasonable" council tax rises - an idea that brought criticism from the Liberal Democrats.

The authoritative new survey of council taxes by the Chartered Institute of Public Finance and Accountancy (CIPFA) was commissioned by BBC Radio 4's Today programme.

North-South divide?

The figures follow criticism of the new way the government has shared out its grants to local councils this year.

Among the complaints is that poorer areas in the north of England have benefited at the expense of parts of the South-East.

While there are exceptions, tax bills have generally risen by more than the national average in areas south of an imaginary line drawn between the River Severn and the Wash.

ENGLISH COUNCIL TAX RISES North West: 9.1% West Midlands: 9.6% Yorks and Humberside: 10% North East: 8.6% East Midlands: 9.5% Greater London: 17.9% South West: 13.8% Eastern: 15.1% South East (excluding London): 15.8% Figures for Band D households

Daphne Bagshaw, deputy leader of the Tory dominated East Sussex County Council, is angry at having to impose a council tax rise of just under 20%.

"I am absolutely furious at being forced to bring in a Labour tax rise in my budget," she told BBC Radio 4's Today programme.

"We received an extra �10m - we actually needed �39m. That gap can only come from one source and that's the council tax payer and the government is well aware of this."

'Shortfall'

The increases are set to be less in Scotland (4%) and Wales (10%).

Experts are blaming many of the rises on a shortfall in money for schools.

HAVE YOUR SAY Why do we accept a tax on living? Shauna, Norwich Click here to read more of your comments Click here to ask the experts

They say several councils are being told to spend more money on schools than the Whitehall grant they get for all services, although the government disputes this.

In the Commons on Wednesday, Local Government Minister Nick Raynsford said it was "outrageous" to suggest the new government formula had prompted the rises.

"In a year when every local authority in the country has had an above-inflation grant increase there is no justification for some of the profligate council tax demands that are coming through, particularly from Conservative authorities," he said.

Capping?

Mr Raynsford said it was right to keep powers to cap councils which behaved "unreasonably".

But Conservative shadow local government secretary Eric Pickles told BBC News Online the government's own rules could prevent such capping.

Prescott and his ministers have attacked "unreasonable" rises

The government has promised that high performing councils - which includes many of those with the highest rises - will be exempt from capping powers.

Mr Pickles said the debacle was like something from a Kafka novel.

"The government demands councils perform a function, fails to give it adequate resources to perform that function, and when an authority puts up council tax to perform it, talks about capping," he said.

Politically, the council tax bills will arrive at a sensitive time - coinciding with the 1p rise in National Insurance contributions in April.

The Tories are set to use the rises as a key weapon when they launch their local election campaign on Thursday.

Local income tax

The Lib Dems say capping is not the answer and more money is needed.

Spokesman Edward Davey told Today: "The poorest pay over three times more than the richest in council tax as a proportion of their income.

"Liberal Democrats want to abolish the council tax ... and we are surprised Labour has kept this unfair Tory tax.

"We would have a local income tax. We would have a tax related to ability to pay."