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Council Tax bills to rise, warns Tory Party

The Conservatives Party has warned that Council Tax bills will pass the 1,300 mark in the spring, just as new figures confirm that family incomes are falling in real terms.

Both shadow chancellor George Osborne and shadow local government secretary Caroline Spelman say inflationary pressures taking their toll on living costs and blame Gordon Brown for putting the big squeeze on Britain’s working people. ??The government published its final Local Government Funding Settlement – which the Conservative Party says paved the way for Council Tax bills to exceed the 1,300 mark in April, and left a typical household facing a 110 a month payout from their take-home pay or pension.

Spelman says: “Regardless of how the government tries to spin these figures the reality is that working families and pensioners will see their Council Tax bills hit 110 a month.?
“Along with rising inflation, rising interest rates and the rising cost of living, many families are really starting to feel the pinch and these latest figures suggest Gordon Brown is going to squeeze family incomes even more in the coming year.”??Osborne has also called the chancellor to account after new official statistics confirmed that household disposable incomes fell last year in real terms, and have risen by only 2.25 a year on average since 2001, equivalent to the price of a pint of beer. ??He says: “Coming on top of the highest inflation for 15 years, this is yet more official confirmation of what families know all too well. ??”Despite Gordon Brown’s boasts about the economy, people’s incomes are failing to keep up with the rising cost of living.

No wonder the chancellor is so keen to move next door to number 10 before the truth about the economy catches up with him.”??According to the latest figures published by the Office for National Statistics, ?average household disposable incomes fell from 502 per week in 2004-05 to 500 in 2005-06.

Since 2001 household’s disposable incomes have stagnated in real terms, only growing by 9 from 491 to 500, or 2.25 a year on average. ?

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