Mr Pickles attacked the increases

According to the government, the average bill will be �908 in 2003-04 compared with �804 in 2002-03.

The news prompted Conservative local government spokesman Eric Pickles to denounce the increases and say bills for band B and D properties had risen by 60% since Labour came to power in 1997.

He said: "Ordinary families in ordinary homes are facing �1,000 Band D council tax bills for the first time."

Liberal Democrat spokesman Edward Davey said his party would reverse what he said was an average hike of �100 in council tax.

"Labour is making this unfair Conservative tax even worse for the vulnerable," he said.

"If the chancellor really cared about pensioners, and others on low incomes, he would take action in this April's budget and prevent this devastating rise in council tax."

But Local Government Minister Nick Raynsford accused some councils of imposing unjustifiable tax rises.

And he warned that councils setting large increases would have to explain themselves to the government.

"We are disappointed some councils have decided to set high increases."

Funding increase

"They must explain to their taxpayers why they have done so," said Mr Raynsford.

"We are still looking in detail at all the figures, but we will not accept increases of this scale year after year.

Mr Raynsford added that councils were getting an average increase in government funding of 5.9% this year and that overall funding to councils was going up by �3.8bn.

"This is more than enough to cover extra education spending, extra police spending and the extra cost of increases in national insurance without excessive tax rises," he said.

"Against this background of sustained increases in funding from government, it is very difficult to see any good justification for excessive council tax increases."

Local authorities were getting a "generous increase with every council getting more than inflation for the first time ever.

Over �1000

"No council is getting less money."

The chairman of the Local Government Association, Sir Jeremy Beecham, said extra funding from central government was welcome.

"But pressures in key areas such as education, policing and social care, has led to higher increases in council spending than the government expected," said Sir Jeremy.

"Unfortunately, the current system of local government funding is so complex that it is not easy for anyone to explain who is responsible for levels of spending and council taxation, and where any blame or credit should go."

Across England band B and D homes with two adults will have to pay on average �1,102 in 2003/4 compared with �976 in 2002/3.

Band D taxpayers in London are facing bills of �1,058 while in the shires they will have to pay �1,114.

In other metropolitan areas bills will be around �1,098.

About �63bn is needed for local authority budgets in the coming year.

Estimated expenditure from special and specific grants and reserves boosts this figure to �70.6bn - �18.9bn is expected to be funded by the council tax.