Most local authorities have heeded the Government's warnings about high council tax rises, Local Government Minister Nick Raynsford said yesterday. But the Government is still considering whether action needs to be taken against some authorities.

The average council tax for a Band D property will increase by 5.9 per cent this coming year. The increase is less than half of last year's average increase of 12.9 per cent and is the lowest rise for nine years, figures published this week by the Office of the Deputy Prime Minister (ODPM) show.

The average council tax in 2004/5 for a Band D dwelling (occupied by two adults) will be £1, 167, compared with £1, 102 in 2003/4.

But the average rise conceals some 'big spenders' this year. Shepway at 28.4% and Christchurch at 14.8% are examples of massive rises. Many councils set very high increases last year and protesters have already made clear their views with some threatening to go to prison rather than pay.

In this backdrop the Government made clear it was prepared to use its powers to cap excessive increases in council tax. Now the figures are released, it has warned that this year’s rises are under scrutiny and it may well cap some authorities.

Nick Raynsford said: “I am encouraged this year's average increase of 5.9% is less than half that of last year and is the lowest in almost a decade. Increases on the same scale as last year were completely unsustainable.”

"Councils therefore cannot justify excessive rises - to us or to their electorate. Many authorities have heeded this message and have set lower council taxes than those they originally proposed. However, some authorities have not.”

"We will now examine the information carefully. As I have always said, we do have targeted capping powers which we are ready to use if necessary.”

"But we will need to consider the budget increases very carefully before taking decisions. We aim to notify any authorities which may be in line for capping by the end of next month."