Six councils capped
Local government minister Nick Raynsford has revealed that six councils will be capped for excessive council tax increases.
Nottingham, Herefordshire, Telford and Wrekin, Torbay, Fenland, and Shepway councils will all have restrictions put upon them – the first time the government has used such measures since 1998.
The councils were planning to introduce council tax rises by as much as 28 per cent, but Mr Raynsford wants the national average rise to be 5.9 per cent.
Local governments have responded angrily to the measures, stating that it could cost them up to £7 million to work out new council tax bills.
But Deputy Prime Minister John Prescott thinks the capping is fair and is expected to say that “every council has had a real terms increase in grants and we expect reasonable council tax rises in return”.
“In some cases councils are proposing unreasonable increases. We cannot allow these rises to go ahead and we will protect council tax payers in these areas,” Mr Prescott will add.
Conservative shadow local government minister Philip Hammond responded to the government’s plans by saying that “the very act of central government intervention via capping weakens local accountability.”
