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Residents to be given right to veto excessive council tax rises (From The Northern Echo)
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Residents to be given right to veto excessive council tax rises
12:10am Friday 30th July 2010
A REFERENDUM will be triggered if any town hall tries to hike council tax by more than inflation, under government plans to be published today.
Communities Secretary Eric Pickles said the proposal - to replace the system of capping - would give residents the "power to veto excessive council tax rises".
"If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide. This is a radical extension of direct democracy."
Eric Pickles
Voters would be asked to choose between the proposed rise and a 'shadow budget', within the announced limit, which the council would also be required prepare.
Ministers expect a council tax referendum to cost about 50p per voter, which would impose a hefty bill of around £200,000 in an authority the size of County Durham.
In a further deterrent to any council tempted to push up the tax, voters could claim a refund if a higher charge was introduced - only for it to be later rejected at the ballot box.
When Bristol City Council staged a voluntary referendum on proposed hikes of up to six per cent, more than half of voters chose to freeze the tax instead - despite warnings it would force spending cuts of £4.5m, mainly in education.
Mr Pickles made clear that the measure was designed to stamp down hard on council tax rises, rather than to loosen town hall purse strings.
The coalition has already urged all authorities to freeze council tax next year, with government help. The new system would be introduced in 2012.
Mr Pickles said: "Hardworking families and pensioners were left feeling powerless and frustrated under the previous government, as council tax bills doubled.
"If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide. This is a radical extension of direct democracy."
The acceptable ceiling for council tax increases would be decided annually by parliament, but is expected to around the level of inflation.
During 13 years in office, Labour stepped in to take capping action against 36 authorities which set 'excessive' rises, including Durham Fire Authority and Hambleton District Council. The power was introduced by the previous Conservative government.
Mr Pickles said council tax bills across England had doubled since 1997, pushing the average bill to £120 a month on a Band D home.
However, increases have slowed dramatically in recent years, to an average of just 2.2 per cent in the North-East this year, compared with more than eight per cent in the middle of the last decade.
The proposed council tax freeze next year has been criticised for putting fierce pressure on council services, at a time of likely massive cuts in government funding.
The coalition has also announced a review into the future of council tax, but given no hint would the changes might be. Labour was urged to make it fairer, by introducing extra bands, but ducked the controversy.
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Your Say YourNorth-East
Super steve, The land that labour ruined says...
8:52am Fri 30 Jul 10
stevegg, middleton st george says...
11:11am Fri 30 Jul 10
Jolly Roger, Co Durham says...
3:34pm Fri 30 Jul 10
Not building there pot all the time, and that goes for the police and fire bridge also.
simmo3578, newton aycliffe says...
7:33pm Fri 30 Jul 10
George BA, Bishop Auckland says...
3:18pm Tue 3 Aug 10
All we have seen is cuts in services and intoduction of prices for things that were free in many areas such as special collections and disposal of wasp nest etc.
The easiest answer is to stop paying staff for sitting around old council offices where they dont have jobs with doing away with borough and district councils in Durham. Has anyone been made redundant, the truth is they havent got the money to make people redundant, the pension fund couldnt handle it.
As far as giving residents a veto on council tax, we will have resident with children voting to cut funding to old people. old people voting to cut funding for children and on and on.
We will only get the services people deserve if we paay for them.
The Council has to sort out all those sitting on their office bums and say on salaries and then look at provided what is need by residents not what they think we want.
Lifetime Townie, says...
3:58pm Tue 3 Aug 10
The easiest answer is to stop paying staff for sitting around old council offices where they dont have jobs and put them out to work with the front line employees. Could be a reality shock for them but well worth it for the residents!
Eric Pickles
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BMD, Darlington says...
8:02am Fri 30 Jul 10