FAMILIES across the North-East and North Yorkshire will be hit with hefty council tax rises, the Government admitted last night.

Definitive figures published by Deputy Prime Minister John Prescott revealed big above inflation increases for everyone.

The lowest tax rise - including charges for police and fire authorities - is six per cent in Derwentside.

The highest overall bill, in Darlington, is nearly four times the rate of inflation at 9.6 per cent. Statistics showed it to be one of the biggest increases in the country.

Ironically, despite the big increase in charges, Darlington continues to have one of the lowest overall bills. The bill for a property in council tax band D will be £1,099.

Across the country band D council tax bills will rise by 5.9 per cent to £1,167 in the coming year.

The above-inflation increases are bound to spark anger among bill payers, particularly pensioners.

They also raise the prospect of capping for the authorities imposing the highest increases.

Despite that, Government ministers congratulated themselves last night at having held tax increases well below the double-digit average of 12.9 per cent seen last year. Local government minister Nick Raynsford said: ''I am very pleased to see the very significant reduction from what was an unacceptably high level last year.

''We made it quite clear to councils we expected them to budget more prudently this year to bring down the increases, and I'm pleased to say the great majority have.

''I have already made clear to councils we expect to see continuing reductions in the year ahead."

Mr Raynsford said he would be "looking very closely" at the proposals of some councils that are planning rises above the average.

But he declined to name the authorities involved or say whether he would carry out his threat to cap the worst offenders.

"There are some that have still brought forward increases that seem on the large side and we are looking very closely at this," he said.

Local authority budgets for 2004-05 will total £66.56bn, said Mr Prescott's office.

Conservative local government spokesman Caroline Spelman said: "Council tax has gone through the roof under Labour. A typical household now pays almost £500 a year more in tax, an increase of 70 per cent since 1997.

"Every year, Labour promises a generous funding settlement, but every year council tax has risen by an average of three times the rate of inflation.

"Council tax bills are now equivalent to almost £100 a month snatched from people's pay packets and pensions."