Council tax set to rise six per cent

Thursday, 25 March 2004 12:00 AM

The government today will unveil new council tax charges in England for the coming year.

Pundits forecast the average tax increase will surge to an above-inflation six per cent.

But local government minister Nick Raynsford is likely to stick to his guns on capping measures for those councils that have failed to rein in excessive increases.

The Chartered Institute of Public Finance and Accountancy (CIPFA) estimates a six per cent average rise for England, with the average band D property levy across the UK to rise 5.7 per cent.

That would add £62 in 2004-2005, taking the annual payment to £1,142.

Mr Raynsford has made it plain the government would not shirk from capping if necessary. 'It's quite unreasonable for people living on fixed incomes to be confronted year after year with unacceptably high increases.

"There is a very firm message there that we will use our capping powers if necessary," he has said.

Meanwhile, the Liberal Democrats at their party conference last weekend said the local levy was "fundamentally unfair" and pledged to abolish the tax, replacing it with one based on the ability to pay.

In January, hundreds of pensioners took the streets of London to protest against the failure of state pensions to keep pace with council tax rises.

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