The government has promised £1.1 billion to local authorities in the hope of ensuring that council tax bills do not increase any higher than five per cent.

The government has promised £1.1 billion to local authorities in the hope of ensuring that council tax bills do not increase any higher than five per cent.

This is in response to the Local Government Association's (LGA) claims in November that taxpayers could witness a rise of over ten per cent if £2.2 billion of government funding was not allocated this way.

Phil Woolas, minister for local government, commented: "This settlement means that high council tax increases are a thing of the past, and we will not tolerate excessive council tax increases either next year or in years to come."

The government has resorted to its capping powers since 2003 to keep extortionate increases in check.

Mr Woolas added: "Councils know that we are prepared to take even tougher action if that proves necessary."