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Council tax to rise by 3 percent in England

April 1, 2009 by admin  
Filed under News, News-Mortgages

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Recently released reports have stated that council tax in England is set to rise by just 3 percent, which is the lowest rise in ten years. However, officials have said that the rise in council tax will still be higher than the rate of inflation.

Ministers have said that costs need to be cut in other areas to ensure that core services are maintained, and that there was no excuse for councils to increase council tax levels by excessive amounts.

The 3 percent increase means that the average household council tax bill will increase by around seventy nine pence per week. In the meantime local authorities are having to look closely at their budgets due to the level of falling revenue that they are making from various services, land, and investments. Councils expect their incomes to fall by around £2.5 billion due to falling revenues.

The rise in council tax for this year had originally been estimated at 3.5 percent. However, a recent survey of local authorities revealed that it is likely to be more along the lines of just 3 percent. Last year ministers said that they would expect council tax increased to be no more than 5 percent, and said that if they needed to they would cap individual increases if they were found to be too high.

One local authority official said: “Councils are responding to the fact that people are feeling the pinch and are revising down this year’s council tax rises. Councils understand people are suffering and they are working flat out to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession.”

Tags: rate of inflation, local businesses, council tax rises, increase, meantime, core services, Local taxation, local authority official

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