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4% council tax rise announced

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Council taxes in England are to increase by four per cent in the year to come, the BBC reports.

According to the department for communities and local government, the average annual bill will increase from £1,101 to £1,146.

The increased tax burden could have a knock-on effect on consumers - leaving them less money to pay off credit cards and other debts and leading to many consolidating their finances.

However, the rise is also smaller than those of the previous 14 years - and is dwarfed by the record 12.9 per cent extra for the 2003-04 tax year.

Speaking to the broadcaster, Local Government Association chairman Sir Simon Milton commented: "Councils have been under a real financial squeeze during the annual struggle to keep bills down.

"The stark reality is that low council tax rises have come at a cost and many councils have had to make tough decisions on spending."

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