There is to be an average rise of 3% on council tax for those in Band D areas of England, the lowest rise in 15 years, according to the Department for Communities and Local Government.

On an average home in the Band D area tax will increase from £1,373 to £ 1,414 for this tax year.

The general average rise per home will be 2.6%, taking the typical household council tax up from £1,145, to £1,175 from April 2009 to April 2010.

However, the LGA (Local Government Association), is begging the government not to put a cap on council tax this year.

Its minister John Healey said: “Most councils across the country are tightening their belts, which is exactly what the public wants to see.

“With a tough economic year ahead, councils will need to do even more to control costs and I remain ready to be tough with capping powers to protect council taxpayers from excessive increases.”

The LGA’s chairperson – Margaret Eaton has added that: “many councils revised down council tax rises this year to minimise household costs for residents.

“Given that town halls have made such efforts to keep council tax down this year, we would not expect the government to cap any councils.”

‘Insult to Injury’

However, the Conservative party believe that there should be no rise at all.

Carolin Spelman is a local government council secretary, and says that: “at a time when millions of workers are facing pay freezes or unemployment this year, it adds insult to injury to drive up bills by a further £41 a year, on top of previous years’ rises.

“Labour’s refusal to follow the example of Scotland and freeze council tax bills in England is unfair on English taxpayers, who yet again have received a raw deal.”

The government does plan to cap the council tax increase in the counties of Derbyshire and Surrey though. If Surrey follows through on this plan, it will be the second successive year it has decided to do this, the first time in 12 years.

These councils are examples of where council tax is shared between several bodies, including the council, police and fire services.

Therefore, the police authorities are allowed to set their own council tax rises as long as they don’t exceed a certain threshold, set out by ministers. Therefore, the local ministers can put a cap on the demands.

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