Council tax 'doubles in 10 years'

The average council tax bill has almost doubled in the past decade, according to a report by the Halifax building society.

The rise, from more £550 to almost £1,100, is three times higher than the rate of inflation and twice the increase in average earnings.

The tax is now 91% higher than when Tony Blair first took office.

The Local Government Association (LGA), which represents councils in England and Wales, has dismissed the report as a rehash of old information.

Corin Thomson, LGA's programme director, said councils needed the extra money to cope with "major environmental challenges" and the care needs of an ageing population.

"Council tax is being put under huge strain over recent years as authorities are having to deal with massive social and economic change," Ms Thomson said.

Average earnings have increased by 51% over the past 10 years and retail price inflation has risen by 31%.

The typical UK household now has to pay £1,078 in council tax annually, compared with £564 in the 1997/98 financial year.

Martin Ellis, chief economist with Halifax, said that councils had made smaller increases in recent years because of the anger surrounding the steep rises since the later 1990s.

He said: "Councils may well turn round and say well that's because they're providing better services.

"But we're just highlighting the point that there's been a big, big increase and certainly much sharper than the increase in either prices or average earnings.

"And this is taking more and more of peoples' disposable income. We have seen, to be fair to councils in the last couple of years, we have seen smaller increases more in line with retail prices in the last couple of years.

"So I think they are taking note of what's been happening and the sort of level of discontent that there's been with the big increases."

Figures show that more than half of all districts have experienced at least a doubling in council tax bills since 1997.

Anna Pearson, Policy Manager at Help the Aged, said many older people on low incomes frequently went without basic essentials to pay their council tax.

"When you compare council tax rises with the meagre rise in the basic state pension, you can see why pensioners are having to deprive themselves of basic necessities to get by.

"In the fifth richest country in the world that is nothing short of appalling.", she said.

But why isn't the extra money councils say they need to provide services coming from central government? That shortfall is what's causing councils to put extreme tax pressure on local people who can't afford to pay more.

Dare we suggest that too much central government money is being wasted elsewhere, such as on contributions to the EU budget - billions of which are frittered by the EU on empty buildings or even simply lost through fraud?

Meanwhile council tax continues to rise and MPs are set to vote an extra £2.5bn a year for the EU. Contact your MP to make sure they vote against that EU budget deal when it comes before Parliament for approval.