Council tax to soar

Middle-income families are to be hit with tax rises next year, with the
average bill looking to increase to £1,500 in just three years.

Government has now confirmed a virtual freeze in money doled out to town
halls to pay for services.

More affluent areas will probably hit harder as they suffer greater shortfall
and will have to raise revenue by increasing their council tax.

Local revenue is set to rise by 4% to £70.4 billion in 2008-09, by 4.4 per
cent to £73.5 billion in 2009-10 and by 4.3 per cent to £76.7 billion in
2010-11, ministers have said.

However council chiefs say this is not sufficient and warned they would be
forced to cut services or raise bills.

Services for pensioners like meals on wheels are likely to be most affected,

Further reading:

halls face council tax capping

Council tax
increases ‘below 5%’

deal could lead to surge in council tax

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