Council tax set to rise by 4%

Council tax bills in England are set to rise by about 4% on average this year, the BBC has learned.

A Local Government Association study of 100 draft council budgets suggests some councils may put bills up by nearly 5%.

The projected charge for an average Band D property for 2007-8 will be £1,373, the research suggests.

The association has warned that many local authorities will still have to ration or cut services despite the increases in tax.

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Taxes are rising in the UK. in some places it will reach 5%. If increases were to continue at such a rate, householders would be paying out £1,500 a year on average by 2011.

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