Council tax capping for nine authorities
Nine local authorities in England have been designated for council tax capping under plans announced by Local Government Minister Nick Raynsford.
Mr Raynsford told MPs that the average Band D council tax increase in England would be 4.1 per cent in 2005/06 – the lowest average rise in ten years.
And he said there was “no excuse” for those local authorities that had raised council tax by excessive amounts.
Across England, the average council tax bill per dwelling will be £1,009 in next year compared to £967 in 2004-05. This is the first time the average bill has gone above the £1,000 barrier – something that was attacked by both the Conservatives and the Liberal Democrats.
Mr Raynsford said: “I am very encouraged by today’s figures that signify the lowest council tax increases in over 10 years. This follows substantial investment by Government. We have provided an extra £3.5billion in 05/06 – 6.3 per cent more than in 04/05.”
He continued: “We have made it clear that there is no excuse for excessive council tax increases either this year or in years to come. The vast majority of local authorities have heeded these warnings.
“I am pleased to say that none of the authorities against which we took capping action in 04/05 have set an excessive budget in 05/06. This, and the fact that the average council tax increase in 05/06 is the lowest in more than a decade, shows that – although we have used it only reluctantly – capping has been effective in restraining council tax increases.”
But Caroline Spelman, shadow Secretary of State for Local and Devolved Government said: “Across the country, bills have soared by 76 per cent since Labour came to power, despite Mr Blair’s promise that he had ‘no plans to increase tax at all’. Council tax has become Labour’s favoured stealth tax – with local councillors taking the blame when bills hit the doorstep.
“Yet in any Labour third term council tax bills will soar even more, due to fiddled funding, a rigged revaluation and new council tax bands, with a typical bill likely to hit £2,000 by the end of a third term.”
Liberal Democrat local government spokesman Edward Davey said: “This is the tip of the iceberg. Labour and Tory plans for revaluation will see bills rocket again after the election, with homes moved into higher tax bands, meaning hundreds of pounds extra.
The nine authorities concerned are: Aylesbury Vale, Daventry, Hambleton, Huntingdonshire, Mid Bedfordshire, North Dorset, Runnymede, Sedgemoor and South Cambridgeshire.
They will have a period of 21 days to come up with a response to today’s announcement for consideration by the Government.
