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Council tax increases 'below 5%' Council tax increases 'below 5%'
(20 minutes later)
Council tax bills in England must increase by "substantially" less than 5% next year, the government has said.Council tax bills in England must increase by "substantially" less than 5% next year, the government has said.
Local Government Minister John Healy pledged an above-inflation rise in central government funding for councils over the next three years.Local Government Minister John Healy pledged an above-inflation rise in central government funding for councils over the next three years.
He said the increase would be 4% for 2008/09 and the following year, and 4.3% for 2010/11. He said the increase would be 4% for 2008/09, 4.4% the following year, and 4.3% for 2010/11.
The Local Government Association says this is not enough to prevent council tax rises being higher than last year.The Local Government Association says this is not enough to prevent council tax rises being higher than last year.
Capping threatCapping threat
But Mr Healy told the House of Commons: "Keeping council tax under control remains a high priority for this government.But Mr Healy told the House of Commons: "Keeping council tax under control remains a high priority for this government.
"We expect the average council tax increase in England to be substantially below 5% a year."We expect the average council tax increase in England to be substantially below 5% a year.
"We will not hesitate to use our capping powers to protect council tax payers from excessive increases. This is a tight settlement but it's fair and affordable.""We will not hesitate to use our capping powers to protect council tax payers from excessive increases. This is a tight settlement but it's fair and affordable."
Elderly careElderly care
The funding settlement will take total central government funding for councils to £76.7bn by 2010/11.The funding settlement will take total central government funding for councils to £76.7bn by 2010/11.
Last year's average council increase was just over 4% on average.Last year's average council increase was just over 4% on average.
Shadow local government minister Alistair Burt, for the Conservatives, said the settlement would mean an extra £208 on council tax bills for those in the average band D- a "whopping increase" of 122% under Labour.Shadow local government minister Alistair Burt, for the Conservatives, said the settlement would mean an extra £208 on council tax bills for those in the average band D- a "whopping increase" of 122% under Labour.
"This pushes council tax at Band D through the £1,500 barrier by the next general election," said Mr Burt."This pushes council tax at Band D through the £1,500 barrier by the next general election," said Mr Burt.
He said there had been a "long, slow and certain betrayal" by ministers of taxpayers since 1997.He said there had been a "long, slow and certain betrayal" by ministers of taxpayers since 1997.
And Mr Healy's statement would have been heard with "more than disappointment" in town halls up and down the country. he added.And Mr Healy's statement would have been heard with "more than disappointment" in town halls up and down the country. he added.
The LGA argues that there are pressures on budgets, with some councils having to ration care for the elderly so that only those whose needs are substantial or critical will get help.The LGA argues that there are pressures on budgets, with some councils having to ration care for the elderly so that only those whose needs are substantial or critical will get help.
It also cites the increasing cost of waste disposal, with landfill tax rising sharply in the next three years.It also cites the increasing cost of waste disposal, with landfill tax rising sharply in the next three years.
LGA chairman Simon Milton said: "My predictions is that council taxes will on average go up higher than last year.LGA chairman Simon Milton said: "My predictions is that council taxes will on average go up higher than last year.
"Last year was just over 4%. This year it will be probably around 4.5% on average."Last year was just over 4%. This year it will be probably around 4.5% on average.
"That will mask variation in some parts of the country there will be lower increases.""That will mask variation in some parts of the country there will be lower increases."
Harrow Council, in north-west London, says it has had to "tighten" its social care provision because of financial pressures.Harrow Council, in north-west London, says it has had to "tighten" its social care provision because of financial pressures.
Leader Chris Mote said: "This was not a decision that the council wanted to take but we were forced to take action in response to the need of balancing the budgets and consistently low government grants."Leader Chris Mote said: "This was not a decision that the council wanted to take but we were forced to take action in response to the need of balancing the budgets and consistently low government grants."