Council tax rises of up to 100% to be capped
Peter Hetherington, regional affairs editor
Thursday March 24, 2005
The Guardian
Ministers tried to present Conservative councils as high spenders yesterday by moving to cap the budgets of nine authorities which have posted inflation-busting council tax rises for the new financial year beginning next week.
The increases range from 9% in Aylesbury, Buckinghamshire, to 100% in South Cambridgeshire and have prompted the local government minister, Nick Raynsford, to claim that the councils had posted high increases in the hope of being bailed out by a Conservative government.
But the leader of the Local Government Association accused the government of "political posturing" and said it had failed to address a deeper funding crisis which will hit households next year.
Overall, however, figures released by the Office of the Deputy Prime Minister showed that increases for the average Band D household would be 4.1%, the lowest for 11 years but still twice the rate of inflation.
Mr Raynsford accused the Tories of hypocrisy. He said they were blaming the government for tax rises while preparing to cut a Whitehall grant to town halls in a multi-billion pound economy drive.
But the shadow local gov ernment secretary, Caroline Spelman, said council tax bills had soared by 76% since Labour came to power, despite claims eight years ago from Tony Blair that he planned no tax no increases.
Coming close to accusing the government of setting up Tory councils for capping, she said the council tax had become Labour's favoured stealth tax, "with local councillors taking the blame when bills hit the doormat". In the event of a third term for Labour, she claimed bills would soar further, thanks to "fiddled funding" and the first revaluation of properties on which the tax is based since it was introduced 12 years ago.
The LGA condemned the government's decision. All of the selected authorities are district councils. But the selected districts have small budgets, with county councils responsible for more expensive services such as education and social care.
Spending in South Cambridgeshire - a low spending authority - represents only 11% of the overall council tax bill for householders. The remainder is levied by Cambridgeshire county council.
Sir Sandy Bruce-Lockhart, the LGA chairman, said if the government were really concerned about council tax payers it would have addressed a 1.5bn "black hole" in council budgets for 2006 which will force up taxes next year. This year the chancellor, Gordon Brown, gave councils an extra 1bn to keep increases to a minimum in the run up to a general election.
"Local government does all it can to keep council taxes down, but with dozens of new spending pressures as a result of central government policy, councils are facing a huge hole in their budgets, with no idea how this spending gap is likely to be plugged," Sir Sandy said.
The offenders
Percentage council tax rises:
South Cambridgeshire 100%
Aylesbury 9%
Daventry 11.9%
Hambleton 17.6%
Huntingdon 12.7%
Mid Bedfordshire 13.3%
North Dorset 23.3%
Runnymeade 17.5%
Sedgemoor 11.8%
http://www.guardian.co.uk/uk_news/story/0,3604,1444332,00.html