Authorities accused over council tax rises (From The Northern Echo)

Authorities accused over council tax rises

8:00am Wednesday 8th February 2012 in Darlington By Rob Merrick

A CABINET minister yesterday accused four North-East councils of being too scared to stage referendums on proposed council tax rises – at a cost of up to £1m.

Local Government Secretary Eric Pickles condemned the authorities – Darlington, Middlesbrough, Redcar and Cleveland and Stockton – for planning tax rises of 3.5 per cent.

He branded them referendum dodgers, because rules force them to hold polls if the proposed hikes are more than 3.5 per cent.

He said: “These councils are treating the electorate with contempt. They should have the courage to put their hikes to the vote and justify the tax rises. Instead, they are running for cover.

“Freezing council tax is practical help every councillor can offer their constituents.

Councillors have a moral duty to sign up to keep down the cost of living. Anything less is a kick in the teeth to hard-working, decent taxpayers.”

The Government previously acknowledged it could cost up to £250,000 to stage a council-wide referendum, depending on the size of the electorate.

It means the bill to stage four referendums in the North-East could reach £1m – at a time when councils are making deep cuts to services.

In North Yorkshire, two authorities plan council tax rises, in York (2.9 per cent) and Scarborough (three per cent).

Last night, Jenny Chapman, the Labour MP for Darlington, accused Mr Pickles of refusing to recognise the need for tax increases that no one wanted.

Ms Chapman said: “I am all for involving local people in making decisions and in using referenda where it is meaningful to do so.

“But there is widespread understanding in Darlington that we are being forced to make some very unpopular cuts and that the council tax rise is being implemented only with great reluctance.

“I think that is a more sophisticated understanding than Mr Pickles has in demanding a council tax freeze – and that we spend £250,000 on an unnecessary and ridiculous referendum.”

Darlington Borough Council said it had planned a 3.5 per cent rise before the referendum legislation was proposed.

Town halls can apply for grants equivalent to a 2.5 per cent rise in council tax in their area, allowing them to freeze bills without being out of pocket. However, they will have to find that money themselves in succeeding years.