Newcastle Journal: Council tax increase 'pays for pensions'

HIKES in council tax are being sucked up by the soaring bill for "gold-plated" pensions for local government workers, a report claimed yesterday.

For every £5 in revenue raised by local authorities, more than £1 goes to fund the retirement of their staff.

Overall, spending on local government pensions rose 13% last year to hit £4.6bn, according to figures obtained by campaigning group the TaxPayers' Alliance.

The scale of the burden emerged as families braced themselves for another inflation-busting council tax increase of 3.9% - taking the average bill for a Band D home to £1,370.

Although the increase is expected to be the lowest for 14 years, the levy has still more than doubled over the past decade.

The Local Government Pension Scheme is still linked to final salary, and allows many employees to retire early with full benefits.