By Lucy Phillips
30 July 2010
The public will be given the power to veto ‘excessive’ rises in council tax, the government announced today.
Communities Secretary Eric Pickles said that any increases in council tax above a limit agreed annually by Westminster would have to be approved by local residents. It will replace the former regime of Whitehall capping.
‘If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide,’ he said.
Any council that sets its rate above the set ceiling would trigger an automatic referendum of all registered electors in their area. Residents would be asked to choose between the proposed rise and a ‘shadow budget’, an outline drawn up by the council of what would happen if the increase did not go ahead.
Where referendums take place retrospectively and voters reject the tax rise, councils would have to refund taxpayers or give a credit at the end of the tax year.
Pickles said that council tax bills in England have doubled since 1997, leaving ‘hardworking families and pensioners feeling powerless and frustrated’, while frontline services such as weekly bin collections had halved.
A consultation on the changes was published today. Legislation is expected to be put before Parliament next year with a view to introducing the right of veto for council tax bills in March 2012.
