ACCouncil tax rises 'lowest in its history'

If confirmed, it would mean the lowest increase since the tax began in 1993 and an effective reduction once inflation is taken into account.

The Local Government Association (LGA) calculated the figure from a survey of the draft budgets of more than 100 councils, police and fire authorities.

With RPI (retail price index) inflation running at 3.7 per cent, a 1.6 per cent increase represents a real-terms cut of 2.1 per cent in the tax, said the LGA.

The rises, which come into effect in April, will add 36p a week onto the average household's council tax bill, compared to 2009/10.

LGA vice-chairman Sir Jeremy Beecham said the real-terms cut came despite a sharp fall in income and an increase in demand for councils' services as a result of the recession.