Lyons insists no local finance reforms are off limits

28 Apr 05
Sir Michael Lyons has insisted that all possibilities are still open in his root-and-branch review of local government finance, despite Nick Raynsford's comments last week that higher council tax bands were not an option.

29 April 2005

Sir Michael Lyons has insisted that all possibilities are still open in his root-and-branch review of local government finance, despite Nick Raynsford's comments last week that higher council tax bands were not an option.

In an interview with Public Finance, Lyons said he had sought and been given assurances by the local government minister that the terms of his review had not been changed in any way.

Raynsford had appeared to suggest in an interview that the government would not accept any recommendation for new bands at the top of the current eight-band scale.

His remarks came after fears were raised that the revaluation exercise, which will feed into any council tax reforms, could mean many properties moving into a higher band and attracting higher bills.

But Lyons told PF that Raynsford was trying to allay such concerns and emphasise that the revaluation, intended to reflect property price rises over the past 15 years, would be revenue neutral.

'I have confirmed with Nick Raynsford that my remit remains unchanged,' Lyons said. 'These are [his] personal comments made in the context of an election campaign and do not limit the options for my review.'

A Labour spokesman told PF: 'Nick Raynsford's comments are in no way an attempt to reshape the remit of the Lyons review or to influence its outcome.'

However, local government finance expert Professor Tony Travers of the London School of Economics said: 'It is open to Lyons to recommend whatever he thinks is best. But… it is the government's decision as to what recommendations it implements.'

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