In reply to Mr Ratcliffe's letter in the Journal, April 10.

Wychavon is extremely conscious of the impact that increases in both direct and indirect taxation have on families living in the area on low or fixed incomes. The council has consistently maintained a policy of low council tax increases while improving services and has achieved this through sound financial management.

Wychavon's Band D council tax in 1993/94 was £74.40. The equivalent figure for the 2003/04 financial year is £91.03 - an increase of £16.63 or 22 per cent in the intervening period. During this period, the retail price index has increased by approximately 38.7 per cent. Wychavon's council tax remains the lowest in Worcestershire and below average for a shire district council.

I hope you would agree from the above that Wychavon has in fact a creditable track record as far as council tax increases are concerned. The problem for us is getting that message across.

The funding mechanism for local government is so complicated that the link between what we pay as individuals in national taxes and local taxes towards the cost of services provided by county, district, town and parish councils and police authorities is not easy to see.

You will notice that your council tax demand asks for contributions for all of the above types of authority. Of the total amount Wychavon collects on behalf of those authorities, less than 9 per cent is kept by this council to help fund the services it provides to the communities in Wychavon. I do therefore hope you get satisfactory explanations from the other authorities you copied your letter to of their council tax increases as nearly 90 per cent of the total amount each council tax payer is asked to contribute goes to them.

I hope I have provided a satisfactory explanation of Wychavon's position but would be happy to help further if required.

SONIA REES, Head of Financial Services, Wychavon District Council, Civic Centre, Pershore.