Mr Raynsford is delivering a statement to MPs

Aylesbury Vale, Daventry, Hambleton, Huntingdonshire, Mid Bedfordshire, North Dorset, Runnymede, Sedgemoor and South Cambridgeshire, all face capping.

Under the announced increases two adults living in a band D property will see their bills go up, on average, from �1,167 to �1,214 in 2005/6.

'Stealth tax'

The tax is a key pre-election issue with Tories offering pensioners a �500 rebate, Labour a one-off �200 rebate and Lib Dems vowing to replace it with a local income tax, based on ability to pay.

The Tories say council tax bills across the country have increased by 76% since 1997, branding it "Labour's favourite stealth tax".

But Mr Raynsford said Labour had made substantial extra investment providing an extra �3.5bn in 2005/6.

"We have made it clear that there is no excuse for excessive council tax increases either this year or in years to come," he said.

"The vast majority of local authorities have heeded these warnings."

Rocketing bills?

For the Lib Dems, local government spokesman Ed Davey said council tax had become an "unbearable burden" for millions of families and he branded average bills of �1,009 as staggering.

He claimed under his party's plans for a local income tax the average family would be �450 better off each year.

Earlier John Prescott and Michael Ancram clashed over council tax as they stood in for Tony Blair and Michael Howard at Prime Minister's Questions.

Review underway

Tory deputy leader Mr Ancram asked why Chancellor Gordon Brown had failed to mention in his Budget that Labour's �200 council tax rebate for pensioners was for one year only.

The deputy prime minister replied: "For the very simple reason that it will be for one year because we are reviewing council tax."