Magazine article Public Finance

Most Councils Set to Keep Tax Rises under the Cap

Magazine article Public Finance

Most Councils Set to Keep Tax Rises under the Cap

Article excerpt

Town halls are on course for average council tax increases of 4% - well within the government's 5% capping threshold but still ahead of the rate of inflation.

A Local Government Association 'snapshot' survey of 112 authorities published this week showed that 70% have set council tax rises of between 3.1% and 5%, while 28% had pegged increases at below 3%.

LGA chair Sir Sandy BruceLockhart said it was a credit to councils that many had kept rises so low. 'There is £2.5bn spent on civil servants issuing directives and guidance, prescribing performance indicators, overseeing bid funding schemes and regulating and inspecting local authorities,' he said.

'By cutting down on this bureaucracy, the money could then be ploughed back into frontline services.'

However, the survey also revealed that four authorities had breached the 5% threshold, including Surrey Police Authority, which is proposing a 5. …

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