TaxPersonal TaxCouncil tax bills soar above inflation

Council tax bills soar above inflation

CIPFA survey finds bills to rise on average by 4.5% in 2006/2007

Average council tax bill are set to rise by 4.5% in 2006/2007, nearly double
the rate of inflation of (at 2.5%), a survey of local authorities across England
and Wales, by the Chartered Institute of Public Finance and Accountancy, has
revealed.

Average bills are set to increase by £53 to £1,250 for a band D property in
2006/2007, CIPFA revealed.

Despite the above-inflation increase, the survey should boost the confidence
of local councils who are under pressure to keep tax rises in check after the
government warned that rises of more than five per cent would be capped when
they allocated a two-year grant settlement of more than £1bn in January.

Steve Freer, Cipfa’s chief executive, said: ‘These results show both
government and local authorities working hard to manage and contain local tax
increases.’

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