Rt Hon Lord Lilley

    An inflation-busting increase in council tax is hiding in the small print of Gordon Brown?s draft budget, Peter Lilley has warned. St Albans residents could end up paying an extra ?59 on B and D homes, more than three times the current rate of inflation, in a bid to balance the Chancellor?s books.

    In the small print of Gordon Brown?s Pre-Budget Report, across the country, council tax receipts are projected to rise by 6.8 per cent in the forthcoming year, compared with projected inflation of just 2 per cent. The increases could even be higher in London and the Home Counties.

    Peter Lilley said:

    “Thanks to Gordon Brown, St Albans residents may face yet another year of soaring council tax, adding ?59 to Band D bills this year.

    “Since they were elected, Labour have raised an extra ?5 billion in council tax ? equivalent to almost 2 pence on income tax. The average household is paying ?212 a year more on B and D properties. In St. Albans, residents are already paying ?865 a year.

    “Furthermore, the cost of making good the impact of the Government?s most notorious stealth tax, the tax on pension funds, alone is ?4 million a year to top up the pension funds of council employees.

    “Labour has turned council tax into another stealth tax. Gordon Brown has engineered massive increases, but councillors take the blame when the bills hit the doorstep.