Council tax debt warning

According to the Daily Mail’s analysis of Gordon Brown’s pre-Budget report, the average council tax rise will be 5.8 per cent, meaning that people should start their debt management plan now.

“That would equate to a rise of more than £60 on an average Band D home,” states the Mail.

“Since 1997, when Labour came to power, the average council tax bill has risen from £525 to well over £1,000,” it adds.

It bases this debt management warning because the Treasury states that it expects council tax bills to reach £23.8 billion in 2007-08, compared to £22.5 billion this year.

While the Treasury said that it was not an expectation but a “plausible” figure needed for the National Audit Office, the Tories claimed it was “clear another rise well above the rate of inflation was on the way”.