Nick Raynsford

Council tax rates in England are set to rise by six per cent over the next financial year, according to a new survey.

Research by the Chartered Institute of Public Finance and Accountancy and BBC Radio 4's Today programme found that the average Band D property in Great Britain would see a 5.7 per cent rise.

CIPFA said this year's rise in England, at six per cent, was the lowest Band D increase since 1996.

The figures represent a fall on last year's rises, which averaged over 12 per cent.

Local government minister Nick Raynsford said the government's vow to cap councils was paying off.

"I have seen a significant number of councils in the last few weeks and many have responded positively," he said.

"Government will use its capping powers if necessary, where authorities impose unreasonable burdens on council tax payers.

"No decisions will be made until we have seen all the returns, but make no mistake, we will use our powers if necessary."

Inflation-busting

But the Conservatives said that the figures were still three times the rate of inflation.

"The government cannot not escape the charge that it has placed massive burdens on councils and fiddled the funding," said shadow local government secretary David Curry.

"In these circumstances, councils have been left with no choice but to either cut services or go to the council tax payer for more money.

"Despite these hurdles, the lowest council tax in the country still comes from Conservative councils."

The Liberal Democrats said the figures showed that the council tax system was "unfair and flawed".

"Ministers may think a six per cent rise in council tax is a success compared to last year, but with the scale of threats and bribes, rises of nearly times inflation are actually a failure," said spokesman Edward DAvey.

"Ministers cannot duck major reform of this failing council tax. The best option remains to scrap it altogether."