A council tax freeze was one of the few saving graces after the coalition government slashed public spending.

But residents in one town near Wolverhampton have been hit by an eye-watering rise of 441.5 per cent.

People living in Shifnal have been ordered to pay the town council £148.97 this year if they live in a BandD home, compared with £27.63 last year.

Town councillors are now getting more than the fire service which looks after the entire Shropshire county.

They have said the precept was reduced last year to repay the community £160,000 collected in 2009-10 for a refurbishment of Shifnal Magistrates Court which did not go ahead.

But the increase has left a sour taste with residents who had been looking forward to a complete freeze.

This week, the Government confirmed that every council in England had frozen its council tax in return for funding the equivalent to a 2.5 per cent rise — but parish councils were exempt.

Ratepayers in Shifnal pay their money to Shropshire Council which has frozen its share, as has Shropshire & Wrekin Fire and Rescue Authority and West Mercia Police.

The increase in the precept means that Shifnal Town Council will get £65 a year more from residents in a Band D home than the fire authority, which gets £83.81.

Sandra Benford, aged 67, of Grosvenor Gardens, said: “The increase has come at a bad time, especially when no-one else is raising their council tax.”

John and Jennifer Allbutt, of Wesley Crescent, are paying an extra £11 a month on their council tax compared with last year.

Mr Allbutt, a 73-year-old retired painter and decorator, said: “I don’t know what we’re getting extra. The town council took over the Christmas lights from the volunteers but we haven’t had any explanation as to why this is going up by so much.”

Admirals Close residents Dorothy and Brian Harris had been looking forward to a council tax freeze.

Great grandmother Mrs Harris, aged 71, said: “I was surprised when the bill came because it’s been said in the news that everyone was freezing their council tax.”

Sisters Jackie and Amanda Byrne, who have run Byrne’s Bakery in Shifnal’s high street for 18 months, have also seen no explanation for the rise. Jackie, of The Grove, said: “I don’t think it’s fair. Emergency services should be getting more. They have had to make a lot of cuts.”

Town clerk Fiona Thomas said: “Last year, members took the decision to effectively ‘pay back’ the community for monies precepted in 2009-10.

“These monies related to proposed stabilisation works on the magistrates court prior to sale which were not carried out — this community payback decision resulted in the people of Shifnal enjoying an unrealistically low precept in terms of the true operating costs of this council during the period 2010-11.

“Members have taken the initiative and have agreed to pilot a scheme to allow all people of Shifnal to input into the decision-making process on what happens next with regard to the magistrates court, and also the delivery of the Christmas lights annually,” she added.

“Shifnal Town Council’s responsibilities are broad and have broadened further in recent months.

“It seems likely this will continue as members take decisions relating to the refurbishment of the toilets in Shifnal with associated staffing, maintenance, administration and ongoing costs, take on powers relating to street trading and its associated costs.

“It will also begin negotiations with Shropshire Council in 2011-12 for the future takeover of the car parks in Shifnal, the maintenance of the street scene, the taking over of allotments, the ongoing management of Christmas lighting and management of CCTV equipment.”