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29/04/2004
High tax rate councils to face caps
Around 14 local authorities are waiting to find out if their budgets will be capped, because of high council tax demands.
The councils reportedly set for cutbacks include: Herefordshire, Nottingham, Telford & Wrekin, Torbay, Fenland and Shepway, which set council tax increases of up to 28%.
The announcement is expected to be made to MPs by the local government minister Nick Raynsford.
The Government is using its powers to cap councils for the first time since 1998, amid concern over high bills. A number of police and fire authorities will also be affected. Speculation has pointed towards penalties for Cumbria, Northamptonshire and West Marcia police forces and Nottingham, Bedfordshire, Durham, Essex & Hertfordshire and Worcester fire brigades.
The Deputy Prime Minister John Prescott is also due to speak in justification of the sanctions on councils.
Last month he announced that average Band D council tax bills will rise by 5.9% in the coming year. The figure is above inflation but far lower than previous rises, which went up by 12.9% in some areas. This resulted in a number of protests by pensioners who said their increased bills outstripped the rises in their pensions.
Local government leaders have said that capping is expensive and unnecessary, and will cost councils an estimated £7 million in order to recalculate the affected home owners' tax bills.
Sir Jeremy Beecham, chairman of the Local Government Association, has said that the electorate should be left to decide the level of council tax in their area through the ballot box, and not the government.
He called for reforms in the way councils collect taxes and that they have more control over their income.
(KmcA)
The councils reportedly set for cutbacks include: Herefordshire, Nottingham, Telford & Wrekin, Torbay, Fenland and Shepway, which set council tax increases of up to 28%.
The announcement is expected to be made to MPs by the local government minister Nick Raynsford.
The Government is using its powers to cap councils for the first time since 1998, amid concern over high bills. A number of police and fire authorities will also be affected. Speculation has pointed towards penalties for Cumbria, Northamptonshire and West Marcia police forces and Nottingham, Bedfordshire, Durham, Essex & Hertfordshire and Worcester fire brigades.
The Deputy Prime Minister John Prescott is also due to speak in justification of the sanctions on councils.
Last month he announced that average Band D council tax bills will rise by 5.9% in the coming year. The figure is above inflation but far lower than previous rises, which went up by 12.9% in some areas. This resulted in a number of protests by pensioners who said their increased bills outstripped the rises in their pensions.
Local government leaders have said that capping is expensive and unnecessary, and will cost councils an estimated £7 million in order to recalculate the affected home owners' tax bills.
Sir Jeremy Beecham, chairman of the Local Government Association, has said that the electorate should be left to decide the level of council tax in their area through the ballot box, and not the government.
He called for reforms in the way councils collect taxes and that they have more control over their income.
(KmcA)
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