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Last Updated: Thursday, 25 March, 2004, 14:40 GMT
Average council tax to rise 5.9%
Council tax demo
Council tax rises sparked protests
The average Band D council tax bill will rise by 5.9% to �1,167 in the coming year, Deputy Prime Minister John Prescott has announced.

The rise is smaller than last year's 12.9% but is still above inflation and follows widespread protests, especially from pensioners, about large increases.

Average bills per home in England will be �967, compared with �908 in 2003/4

The average council tax per home will be �1,035 in London, �1,005 in shire areas and �813 in metropolitan areas.

Local government minister Nick Raynsford said: "I am encouraged this year's average increase is less than half that of last year and is the lowest in almost a decade.

Council tax has become a stealth tax, engineered by Gordon Brown through fiddled Whitehall funding, but with local councillors taking the blame when council tax bills hit the doorstep
Caroline Spelman
Tory local government

"Since 1997 council funding has increased by 30% in real terms. Councils therefore cannot justify excessive rises - to us or to their electorate."

He said that they would "examine carefully" whether to use capping powers on councils proposing large percentage increases.

Those councils which might face capping, will be told by the end of April, he added.

Largest rises

Conservative local government spokesman Caroline Spelman said: "Council tax has gone through the roof under Labour. A typical household now pays almost �500 a year more in tax, an increase of 70% since 1997.

HAVE YOUR SAY
Yet again, this is an above the rate of inflation rise for, at best, no improved service
Mike K, Tendring, Essex

"Every year Labour promises a generous funding settlement, but every year council tax has risen by an average of three times the rate of inflation.

"Council tax has become a stealth tax, engineered by Gordon Brown through fiddled Whitehall funding, but with local councillors taking the blame when council tax bills hit the doorstep."

Edward Davey, Lib Dem local government spokesman, said: "This inflation busting rise reconfirms that the Council Tax system is unfair and flawed.

BIG BAND D RISES
Shepway: 28.4%
Runnymede: 17.5%
Christchurch: 14.8%
Fenland: 14.5%
Huntingdonshire: 14.5%

"John Prescott's capping threat to councils, and Gordon Brown's Budget attempt to buy off pensioners over 70 for one year, cannot disguise that the only way to stop the massive year on year rises is to scrap this hated tax.

Authorities imposing the highest Band D percentage rises for 2004-05 include Shepway in Kent (28.4%), Runnymede, Surrey (17.5%), Christchurch, Dorset (14.8%), Fenland, Cambridgeshire (14.5%) and Huntingdonshire (14.5%).


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