Get ready for soaring council tax

COUNCIL tax bills are set to soar next year as a direct result of the credit crunch.

SERVICES Council tax bills are set to saor SERVICES: Council tax bills are set to saor

Local authorities are being hit by the loss of income from planning applications and land searches caused by the reduction in housebuilding, as well as the huge price increases in energy and fuel.

Higher mortgages and repossessions could severely reduce people’s ability to pay the tax with many councils expecting to increase bills by at least five per cent.

In Elmbridge, Surrey, the duty is set to rise next year as the council’s income takes a hit from the worsening economic situation.

Council leader Roy Taylor described the situation as “quite horrible” and indicated that the Elmbridge precept would have to be raised next year for the first time since 2006.

“We are not exempt from the downturn,” he said. “We are affected by fuel costs, gas and electricity price rises and rising inflation. These are all serious issues and we have some dangerous times ahead.

“The council tax will not be zero per cent next year with the downturn in income. It is quite horrible but it is not our fault. We cannot control the world.”

In the Esher area alone six possible planning schemes have been put on the back burner because of fears of a recession.

Nottinghamshire County Council could be forced to borrow an extra £34million to fund major projects as land values are hit by the credit crunch.

A report last week showed the authority was facing a shortfall for its capital budget for 2008/09 and would have to borrow £33.8million more than expected.

Council leader David Kirkham said: “Apart from being hit by rising fuels and food costs, we pay for our capital programme partly by sales of land and property.”

In Cambridgeshire, up to £12million could be lost by the county council in the next three

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