HALTON has seen one of the smallest increases in council taxes in the country, according to the latest figures from the Halifax.

The mortgage lender found UK Council Tax bills have on average soared by 121% since the Council Tax was introduced in 1993.

Halton's Council Tax bills, rising at 74%, were closely followed by the Liverpool's which rose by 85% from £451 in 1993 to £832 across all bands in 2005. Knowsley also rose by 85%.

The average North West homeowner is now paying £918 on average across all bands with Band D property owners paying £1,235 on average.

The figures have revealed marked differences across the UK, with Richmond on Thames households paying £1,549 compared with Wandsworth which sees average bills of £571.

Wellingborough in the East Midlands has been the biggest rise in Council Tax with a staggering 374% rise in bills.

Tony McDermott, leader of Halton Borough Council, said: 'The average payment for Council Tax nationally is £1,009 as opposed to £804 in Halton - that's £205 less than the average.

'In the 12 years that the Council Tax has operated it has gone up 121% - ours has gone up 74%.

'Ours has gone up more than the rate of inflation. Out of the 400 local authorities we are the 27th lowest and the third lowest in the North West.'

Martin Ellis, chief economist with the Halifax, said: 'Council Tax bills are growing significantly faster than inflation.

'Bills diverge markedly across the country in some cases by more than 50% and growth rates have differed with a wide margin between local authorities.

Caroline Spelman, shadow local government secretary, said: 'Labour's abuse of the Council Tax system has caused hikes in Council Tax which many are now struggling to meet.'

A spokesman for the office of the deputy prime minister said: 'There is no excuse for excessive Council Tax increases.

'All local authorities in England have received a grant increase this year in line with or above inflation for the third year running. In total local government has had a 33% real terms increases in funding since 1997.

'We delivered another good settlement for local government in 2005-6 one which ensures they can provide a high level of service.

'We have provided an extra £3.5bn - 6.3% more than in 2004-5.'