The average council tax bill in Scotland has reportedly risen by 101 per cent since April 1993.

A new study indicates that, since its introduction 12 years ago, council tax has soared above the headline rate of the Retail Price Index (36 per cent since 1993), and the 88 per cent rise in house prices over the same period.

The research by Bank of Scotland calculates that average council tax on a Scottish home is now £925 for 2005-06, exclusive of discounts and subsidies, just below the £1,009 average in England. Wales has seen council tax bills soar by 186 per cent since 1993 to £790, while bills in England have risen by 121 per cent.

The Bank of Scotland survey also discovered that there is significant divergence in bills, with tax in East Dunbartonshire at £1,176 a year for the average household, compared to £681 in the Western Isles.

The steepest increase in the average council tax bill since 1996-97 was found in the Shetland Islands, at 119 per cent, while the smallest were in West Dunbartonshire and the City of Edinburgh (both 38 per cent). Eight out of the 32 council tax areas in Scotland have seen an increase in average council tax charges per dwelling of more than £400 since the 1996-97 tax year.

Martin Ellis, chief economist at Bank of Scotland, said: "Council tax bills have grown more quickly than inflation in Scotland. Bills diverge significantly across the country – in some cases by more than one third and growth rates have also differed by a wide margin between local authorities."