Council tax to rise by 3%

Councils across England are forecast to increase council tax by an average of 3 per cent – the lowest rise for ten years, but still higher than the inflation rate. Councils have predicted their incomes will fall by £2.5 billion because of lower returns from investments and from selling off land while the house market is depressed. Ministers said there was ‘no excuse for excessive rises’, and costs should be cut elsewhere to protect core services.