15 March 2002
The average figure for a band D property will rise by £72 to £963 in 2002/03, according to an analysis carried out by CIPFA. The results are based on provisional figures provided by English and Welsh billing authorities.
English councils will levy an average band D increase of 8.2%, with bills rising from £901 to £975. In Wales, bills will rise by £52, or 7.3%, from £710 to £762. The London boroughs have managed to hold their increases to a minimum – the average bill in the capital will go up by 6.1%, or £51, to £892.
Prime Minister Tony Blair will be less than thrilled that residents in his Sedgefield, Co Durham, constituency will have the highest council tax bill, at £1,194.06. Wellingborough in Northamptonshire faces the biggest increase – bills will soar by 17.8% to £949.12.
CIPFA chief executive Steve Freer said authorities were having to balance competing objectives. 'On the one hand, they are striving to keep the local tax down, and on the other they are under pressure to invest in significant service improvements.'
The Local Government Association said that many authorities were still facing serious problems with their budgets. A spokeswoman said: 'The LGA has repeatedly warned the government that local authorities face a number of pressures – such as teachers' pay, social care budgets and increased pension contributions – that were likely to impact on local spending decisions.'
'We are not surprised that many local authorities have found it necessary to increase substantially the level of their council tax.'
Shadow local government secretary Theresa May accused ministers of imposing a 'stealth tax' by forcing authorities to impose big increases. But local government minister Nick Raynsford argued that local authority funding had risen by 20% in real terms since Labour came to power.
The Department for Transport, Local Government and the Regions later issued a statement. 'The government's increase in funding is sufficient to allow authorities to set reasonable council tax increases. If big increases occur, local people have every reason to question their council's decision,' it said.
PFmar2002
