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The Office of the Deputy Prime Minister (ODPM) announced yesterday that the average council tax paid by Band D properties will rise by 4.5% over the 2006-07 financial year, sparking criticism from pensioners groups angered by the above-inflation increases.

 

The ODPM said the average council tax for a band D property would be £1,268, up from £1,214 in 2005-06. This 4.5% increase would only be 4.2% if the levy on London homes to fund the 2012 Olympics were excluded. The ODPM added that the average bill per house in England would be £1,056, up 4.7 percent.

 

Local Government Minister Phil Woolas said that above inflation grant increases from central Government and the continued threat of tough capping action against local authorities who put up bills by more than 5 percent have led to one of the lowest council tax increases in over a decade.

 

But the Local Government Association (LGA), which represents local councils, said the government had failed to provide local authorities with enough money meaning that some services, such as those providing care for the elderly and those with mental or physical disabilities, would suffer.

 

 

 

 

 

 

 

 

 

4.5% council tax rise to hit pensioners