Council tax rises to hit suburbs

Council tax payers in outer London boroughs will be among the hardest hit by steep rises next year, under proposals announced by the Government today.

Taxpayers in the worstaffected areas will be handed bills of nearly £1,000 a year, up almost £100. The Government is blaming the increase on the rising cost of care for the elderly.

Local Government Secretary Stephen Byers announced the grants to local authorities in the Commons. The figure was expected to be too small to meet the additional £1 billion needed for residential care for the elderly.

Councils are spending more in an effort to raise standards. The situation is not helped by rising property prices, encouraging those who run homes for the elderly people to sell.

The shortfall between what local authorities receive from central government and what they spend has to be met by council taxes.