Title

Local government experts have rubbished Tory claims that council tax bills in London could soar by £2,000 in the new year. Conservative local government spokeswoman, Caroline Spelman, said home-owners could be hit by increases and the introduction of a house price tax on top of their normal council tax bill. But figures from the Chartered Institute of Public Finance and Accountancy (CIPFA) revealed that a £2,000 bill increase would mean a rise of 165% for an average Band D property in London and 82% for a Band H. Mrs Spelman said figures in Chancellor Gordon Brown's pre-budget report showed council tax revenues would leap from £22.5bn in 2006-7 to £23.8bn in 2007-8, an increase of 5.8%. The 5.8% figure would put all councils above the Department for Communities and Local Government's (DCLG) target of 5%. ‘The small print of the pre-Budget report reveals Labour are planning an inflation-busting council tax hike this April,' she said. ‘But I fear worse could be to come from Mr Brown.' A Treasury spokesman said the 5.8% figure in the pre-Budget review was ‘not a forecast or a prediction'. The spokesman said it was an average figure, based on the last three years of council tax increases. ‘These figures are used for the purposes of managing the public finances,' said a DCLG spokesman. ‘This is not a prediction of the rate at which councils will set their council tax. No decisions have been taken on capping principles, but the Government expects to see an average council tax increase of less than 5% in England.' A spokesman for London Councils said it was up to each individual borough to set their own council tax increases.

Title

FINANCE

Experts reject Tory tax claim

SUBSCRIBE TO CONTINUE READING