Council tax cap proposed
The Government has warned councils that it may use powers to cap council tax rises for the next financial year.
All councils are affected by the warning, which follows increasing concern about the level of council tax people are expected to pay.
Last year council taxes rose by an average of more than 10%, which the Government feels should be unnecessary with national public spending rises. But the warning to all councils may represent a u-turn.
Until now the Government had promised not to cap council tax rises in councils branded ‘excellent’ by the Audit Commission, though it has indicated that every council will face a cap if it puts council tax up too much.
The Liberal democrats have attacked the Government over the announcement that local councils will be stopped from raising taxes too fast.
Liberal Democrat Shadow ODPM Spokesman Edward Davey commented: ‘the true face of this Government’s plans for local councils became clear today: more central control.’
Mr Davey also restated Liberal Democrat opposition to council tax, saying: ‘the best way to deal with the unfair Council Tax is to scrap it! It’s time to trust local councils and not control them.’
