Council tax capping “almost inevitable”
It appears “almost inevitable” that capping will be used to stop local councils from imposing “excessive” council tax increases.
Local Government Minister Nick Raynsford said he would be demanding answers from those town hall chiefs who have failed to respond to his written warnings.
Sixty-five authority leaders were written to requesting they increase tax “in low single figures,” not more than five per cent.
Many had responded positively, Mr Raynsford told MPs, but some had held back.
A recent survey carried out by the Local Government Chronicle found that the majority of councils intend to increase council tax by more than five per cent.
He told the Commons: “Some have indicated that press reports about larger increases were incorrect, others have clearly acted and brought down their own originally higher estimates. That is very welcome indeed.
“But some have not and I am therefore planning to call in some authorities, ones who have not provided satisfactory replies.
“We would much prefer not to use our capping powers but it now appears inevitable that we will have to do so this year.”
My Raynsford said there was no justification for “unreasonably” large council tax increases given the “generous” grant increases authorities have received in 2004.
But Sir Jeremy Beecham, chairman of the Local Government Association, said that while central government had increased funding, it had also made councils increase spending, and told them where to spend.
“Part of the problem is that much of that has been ring-fenced for particular services, for example like education and is not therefore available to sustain other critical services like care for the elderly or highway maintenance and so on,’ he said.
“But every council’s got to justify its decisions in the first place to the people who pay the council tax bills and who need and use the services and secondly, if required, to the Government.
“They ought to be able to do that and only if they are demonstrably profligate, to use the Government’s phrase, should there be any question of action, but even then our belief in local government is that we should be answerable to those who elect us, rather the Government in Whitehall whatever its colour.”
Sir Jeremy said the LGA was “opposed in principle” to capping and hoped the measure would not be needed.
