Council Tax

The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Andrews)
My honourable friend the Minister for Local Government and Community Cohesion has made the following Written Ministerial Statement.

Figures published by my department on 27 March show that the average council tax increase in England in 2007-08 is 4.2 per cent.

We had made it clear to authorities that we expected to see an average council tax increase of less than 5 per cent and I am pleased that, overall, local government has responded in a positive manner in keeping down the average council tax increase.

We have therefore decided not to exercise our reserve capping powers in 2007-08. However, keeping council tax under control remains a priority for the Government. We will have no hesitation in using our capping powers in future, if the circumstances require it.