LOCAL authorities have hit back at Government condemnation of excessive council tax rises.

Figures released by the Office of the Deputy Prime Minister show that the average council tax per dwelling will rise by £100 from next month to £908.

The average council tax in 2003/04 for a Band D dwelling occupied by two adults will be £1,102, compared with £976 in 2002/03 - an increase of 12.9 per cent.

Local Government Minister Nick Raynsford said there was no justification for some high increases, particularly in view of a 5.9 per cent funding increase, and it would be examining whether tax levels were reasonable on a case-by-case basis.

The Association of North-East Councils (Anec) said the Government financial settlement had failed to tackle fundamental economic and social challenges the region faced.

Spokeswoman Hilary Knox said: "North-East councils did not get from the local government finance settlement what it argued for. A strong case was made for a needs- based formula to be introduced which would have significantly benefited the North-East region.

"Anec argued for specific targeted grants to tackle deprivation and to deliver structural change in the way that resources are allocated."

Two-thirds of council tax increases are less than ten per cent, although some local authorities, particularly in the South-East, have set huge increases, in some cases more than 40 per cent.

In the North-East, the average council tax bill will go up 8.9 per cent, from £734.84 to £800.22.