No excuse for excessive council tax rises says Raynsford

Contributed by editor on Dec 03, 2004 - 10:34 AM


Shepway Council will get a 6.2 per cent funding increase from the Government in 2005 - 06.

This will be the third successive year that local authorities have received an above inflation increase.

Announcing the provisional annual settlement, Local Government Minister Nick Raynsford, said that given this significant investment there was no excuse for excessive council tax rises.

"This is a very good settlement for local government.

"This is enough money for local authorities to continue to provide improved services to communities."

He said that the Government expects local authorities to ensure that council taxes increase are less than five per cent.  He is prepared to take even tougher action to cap rises next year if council fail to comply.

"High council tax increases are a thing of the past. We will not tolerate excessive council tax increases either next year or in years to come."

The Chancellor also announced an extra £1bn to reduce the pressures on local government and reducing the council tax rise, in his pre-Budget report today (Thursday, 2 December).

Local authorities now have until Tuesday, 11 January to send their comments on the provisional figures.