LG Minister Barbara Follett predicts a 16 year low for council tax increase next year

The local government finance settlement for 2010-11 has been announced today. Local Government Minister Barbara Follett confirmed that English councils will get a four per cent funding increase for next year confirmed

Ms Follett said that given the current level of inflation and resources made available in the settlement, the Government expects the average Band D council tax increase in 2010-11 to be the lowest for at least sixteen years. However, the Government remains prepared to take capping action on excessive increases set by individual authorities if necessary.

The average Band D council tax increase has been steadily falling in recent years and this year's average increase of three per cent was the lowest since 1994-95. Ms Follett expects to see it fall further next year while councils protect and improve front line services. Already many councils have indicated that they plan to freeze or cut council tax next year.

The Minister said "We and the public also expect councils to play their part and find efficiency savings that make each taxpayer's pounds work as hard as possible. Local government has an excellent record saving £1.7bn this year and next year I want to see them build on that. We are helping them maintain high quality local services in a time of public expenditure constraint through our Total Place pilots and Smarter Government initiatives."

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For the full Ministerial Statement click here
Full local government finance settlement for 2010-11 available here