CIPFA predicts drop in council tax inflation

Council taxes will rise by 4.2% during 2007-8, the
Chartered Institute of Public Finance and
(CIPFA) has forecast.

The institute based its forecast on a survey of almost two-thirds of English
and Welsh local authorities with
D tax levels

While this would be the second-lowest rise since 1994-5, it remains
significantly above the government’s preferred rate of inflation, currently at

, CIPFA chief executive, said the predicted fall from last year’s 4.5%
growth was ‘positive news’ as it meant central and local governments were not
clashing on spending priorities.

’There is little doubt that the threat of capping if tax increases exceed 5%
has concentrated minds,’ he said.

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