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£4.6bn in council tax 'pays for public pensions'

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The Taxpayers' Alliance has claimed that an excessive part of council tax funds have gone towards public sector pension plans.

According to a report from the group, a 13 per cent increase in pension contributions was marked for the 2006/07 period - bringing the total to £4.6 billion.

This means that the average council spent £10 million on the pensions.

The Taxpayers' Alliance is now calling for a government review on the issue.

Chairman of the alliance Andrew Allum said: "It's unacceptable that ordinary families and pensioners who struggle to pay inflated council tax bills see so much of their money spent on gold-plated council pensions that have all but disappeared in the wider economy."

A recent report from Citizens Advice highlighted the increasing concerns that many ratepayers feel regarding their council tax.

The amount of people contacting the charity's bureaux about the tax was found to have increased by 25 per cent over the past year.

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