Town halls have revised down their predicted council tax rise this year, claiming plans to help residents during the recession have restricted increases to 3%. Earlier this year, the LGA predicted average council tax rises would be 3.5% for 2009/10. But, boosted by a three-year finance settlement from Whitehall, which allows councils to plan budgets more effectively, councils have restricted tax bills as the budget-setting process draws to an end. The 3% increase now predicted by the LGA would take average council tax bills to £1,414 – an annual increase of £41. Cllr Margaret Eaton, LGA chairman, said: ‘Councils understand that people are suffering and they're working flat out to keep council tax down, to keep local businesses afloat and help people deal with the impact of the recession.'
