Rise for council tax 'might be above-inflation'

19/01/2009

Council tax is to increase by around 3.5 per cent on average this year.

The Local Government Association (LGA) released the predicted tax rises, which are to vary depending on each council, after conducting a poll of 140 local authorities.

On average, the tax bill will hit £1,421 for 2009/10, up £48 on 2008/09.

It is at present uncertain as to whether the tax will increase above or below the inflation rate.

The consumer price index - an annual inflation indicator - currently stands at 4.1 per cent.

However, it has dropped from a recent high exceeding five per cent and is expected to fall further as the year wears on.

LGA chairman Margaret Eaton said: "Money is tight for everyone and nobody likes paying more council tax but town halls are making enormous efforts to keep bills down.

"Councils understand that people are suffering and they're working flat out to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession."

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