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A cheap mortgage to compensate for council tax

Date: Mon, 28 Nov 2005

Securing a cheap mortgage deal could go some way to offsetting the recent rise in council tax bills.

The average council tax bill has increased by 121 per cent since 1993/1994 claims Halifax, compared to an 83 per cent increase in average salaries.

The increases could mean many homeowners have to find a way of reducing their monthly outgoings in order to meet the growing cost and this could involve remortgaging properties in order to take advantage of low interest rates.

In particular, elderly people are likely to be hit hardest by the increases in council tax, especially as bills have risen significantly in areas traditionally occupied by pensioners.

In the 20 English local authorities with the highest proportion of pensioners the average council tax bill has risen by 149 per cent, with Chichester showing the steepest fastest increase from £456 to £1,244.

The Conservative shadow secretary for local government and communities, Caroline Spelman, said: "Under Labour pensioners, especially those on fixed incomes, are finding it increasingly difficult to make ends meet because of the burden of taxation.

She added: "Council tax has proved to be the Labour's stealth tax of choice, with bills soaring by 76 per cent since 1997."


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