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| Version 4 | Version 5 |
|---|---|
| English council tax 'to rise 3%' | English council tax 'to rise 3%' |
| (about 3 hours later) | |
| Council taxes are forecast to rise by an average of 3% in England - the lowest rise in ten years but still set to be higher than the inflation rate. | Council taxes are forecast to rise by an average of 3% in England - the lowest rise in ten years but still set to be higher than the inflation rate. |
| Ministers said there was "no excuse for excessive rises" and costs could be cut elsewhere to protect core services. | Ministers said there was "no excuse for excessive rises" and costs could be cut elsewhere to protect core services. |
| The rise is equivalent to 79p a week on average bills. | The rise is equivalent to 79p a week on average bills. |
| Councils predict their incomes will fall by £2.5bn due to lower income from investments, services and from selling off land amid falling house prices. | Councils predict their incomes will fall by £2.5bn due to lower income from investments, services and from selling off land amid falling house prices. |
| Inflation is currently 3% when measured by the official Consumer Price Indexes measure, but is expected to fall further. | Inflation is currently 3% when measured by the official Consumer Price Indexes measure, but is expected to fall further. |
| And the Retail Prices Index, an inflation measure which includes mortgage costs and is often used in wage negotiations, has already fallen to 0.1%. | And the Retail Prices Index, an inflation measure which includes mortgage costs and is often used in wage negotiations, has already fallen to 0.1%. |
| More demand | More demand |
| The Conservatives have pledged to freeze council tax for two years and council tax bills in Scotland have been frozen for the year. | The Conservatives have pledged to freeze council tax for two years and council tax bills in Scotland have been frozen for the year. |
| Local authorities are having to revise their budgets because of the downturn which is reducing the amount of income they can raise through services like car parking and leisure centres, reducing interest on investments and the income they would usually get from selling off land. | Local authorities are having to revise their budgets because of the downturn which is reducing the amount of income they can raise through services like car parking and leisure centres, reducing interest on investments and the income they would usually get from selling off land. |
| Councils understand people are suffering Margaret Eaton, Local Government Association | Councils understand people are suffering Margaret Eaton, Local Government Association |
| At the same time, increased demand for housing benefits and other services for those with low incomes has been putting pressure on their finances. | At the same time, increased demand for housing benefits and other services for those with low incomes has been putting pressure on their finances. |
| A survey of English councils in December found that the average rise in council tax bills in 2009-10 was expected to be 3%, down from a forecasted 3.5% increase. | A survey of English councils in December found that the average rise in council tax bills in 2009-10 was expected to be 3%, down from a forecasted 3.5% increase. |
| If correct, this would mean the average annual bill this financial year rising by £41 a year to a total of £1,414. | If correct, this would mean the average annual bill this financial year rising by £41 a year to a total of £1,414. |
| 'No excuses' | 'No excuses' |
| The state pension is due to increase by 5% from next April - campaigners have often complained that council tax rises have outstripped pension rises for years. | The state pension is due to increase by 5% from next April - campaigners have often complained that council tax rises have outstripped pension rises for years. |
| Ministers said in October that they expected average annual rises to be below 5% and that they would not hesitate to cap individual increases if they were excessive. | Ministers said in October that they expected average annual rises to be below 5% and that they would not hesitate to cap individual increases if they were excessive. |
| "Councils are responding to the fact that people are feeling the pinch and are revising down this year's council tax rises," said Margaret Eaton, LGA chairman. | "Councils are responding to the fact that people are feeling the pinch and are revising down this year's council tax rises," said Margaret Eaton, LGA chairman. |
| The government should do more to cut the tax burden on those on the lowest incomes Julia Goldsworthy, Lib Dems | The government should do more to cut the tax burden on those on the lowest incomes Julia Goldsworthy, Lib Dems |
| "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." | "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." |
| Local Government Minister John Healey said councils had the budgetary stability to plan ahead. | Local Government Minister John Healey said councils had the budgetary stability to plan ahead. |
| He said: "Next year, they will receive a 4.2% increase in grants, with more funding strings removed so that money can be used as they see fit to meet local needs and priorities." | He said: "Next year, they will receive a 4.2% increase in grants, with more funding strings removed so that money can be used as they see fit to meet local needs and priorities." |
| "So there is no excuse for excessive council tax rises or service cuts, and I have made clear that we will take capping action where necessary to protect council taxpayers." | "So there is no excuse for excessive council tax rises or service cuts, and I have made clear that we will take capping action where necessary to protect council taxpayers." |
| 'Tough decisions' | 'Tough decisions' |
| The Conservatives say they would fund a two-year freeze on council tax by cutting spending on government consultants and advertising. | The Conservatives say they would fund a two-year freeze on council tax by cutting spending on government consultants and advertising. |
| Shadow local government secretary Caroline Spelman said taxpayers were "already feeling the pain of council tax having doubled under Labour". | Shadow local government secretary Caroline Spelman said taxpayers were "already feeling the pain of council tax having doubled under Labour". |
| She said: "Now council tax bills are to rise by a further £41 this April, at a time when people are losing their jobs or being hit with pay freezes. | She said: "Now council tax bills are to rise by a further £41 this April, at a time when people are losing their jobs or being hit with pay freezes. |
| "By contrast, residents in Scotland will benefit from another council tax freeze this year." | "By contrast, residents in Scotland will benefit from another council tax freeze this year." |
| The Liberal Democrats said councils were making "tough decisions". | The Liberal Democrats said councils were making "tough decisions". |
| "The government should follow their example and do more to cut the tax burden on those on the lowest incomes," local government spokesman Julia Goldsworthy said. | "The government should follow their example and do more to cut the tax burden on those on the lowest incomes," local government spokesman Julia Goldsworthy said. |