Residents' power to referendum and veto inflation-busting council tax rises
Households are to be handed the power to veto inflation-busting council tax rises, the coalition Government is to announce today.
Local Government Secretary Eric Pickles says a local referendum will be triggered if councils attempt to charge an "excessive" annual levy.
Mr Pickles said taxpayers were left feeling "powerless and frustrated" as the charge doubled in Devon and Cornwall during 13 years of Labour rule.
The bill charged to the average home now stands at £120 a month.
He said: "If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide."
Under the proposal, first mooted when the Conservatives were in Opposition but now put out to consultation, the five per cent cap on council tax rises will be scrapped.
The Government argues the cap is a "top-down" idea imposed on the regions by Whitehall.
Each year, Parliament will determine a threshold that tax increases should not breach. It is likely the ceiling will be pegged to inflation, which currently stands at five per cent.
Any proposed rises above the threshold will trigger a referendum. In the event, councils would attempt to justify the increase by explaining the impact on services if the hike is blocked.
Registered voters would be asked to choose between the proposed rise and a shadow budget.
A "no" vote would leave councils having to refund taxpayers or give a credit at the end of the tax year.
The Government argues that the mechanism is more "democratic and transparent" than a cap.
Mr Pickles said: "Hardworking families and pensioners were left feeling powerless and frustrated under the previous government, as council tax bills doubled while their frontline services like weekly bin collections were halved.
"The new Government is committed to tackling the fiddled funding which drove up council tax, but such reforms must go hand in hand with measures to protect the interests of local taxpayers."
In an effort to soften the impact of brutal austerity measures, Chancellor George Osborne announced at the Budget that the Government would work with local authorities to freeze council tax bills in 2011/12.
The South West is this year bearing the brunt of the sharpest rise in council tax of any English region, with the precept on average rising by 2.5 per cent to £1,498.
And while council tax bills across the Westcountry rose modestly in April, it came after years of sharp rises.
Devon County Council said the 1.98 per cent rise for 2010/11, meaning the average band D household pays £1,116, was its lowest-ever increase.
The average household in Cornwall has to fork out £1,244 this year after the local authority put the charge up by 2.9 per cent.
Council tax went up 2.75 per cent in Torbay and three per cent in Plymouth this year.
But since 1997, annual rises of between 3.5 per cent and 13.8 per cent have been metered out to households in the South West.
For example, average bills in Torridge, Devon rose from £473 in 1997 to £1,215 this year, up 157 per cent.
Mr Pickles says he is "determined to reverse the presumption that Whitehall knows best by making local councils directly accountable to the local taxpayer".
The council tax veto forms part of the Government's Localism Bill, which ministers expect to become law in November 2011.
As such, the right of veto is expected to be in place for council tax bills issued in March 2012.
The Bill, which also includes proposals for elected local mayors and allowing rural villages to approve building schemes, is central to Con-Lib plans to reduce the role of central government.
Mr Pickles said: "This is a radical extension of direct democracy, as part of a wider programme of decentralising power to local communities.
"Power should not just be given to councils, but be devolved further down to neighbourhoods and citizens."
19 Comments
View all
by Gary, Saltash
Monday, August 02 2010, 9:09AM
“Get rid of the multi language stuff promoting Cornish language, in fact get rid of MK, they infect everything good in Cornwall
Zoe, PZ
Zoe you seem to be more intolerant than they are, life is a compromise. The Cornish language is part of our heritage and has been hijacked by people seeking to divide Cornwall for purely self indulgent reasons. This story has nothing to do with nationalism and to keep including it gives weight to the Nats rather than demonstrating the fringe movement they truly are. When I said diversity schemes I did not mean English\Cornish.
I must admit it is slightly uplifting to find so many people agreeing; now all we need is to know if there is anything we can do to prevent this happening”
by max power, st austell
Saturday, July 31 2010, 10:13PM
“Redneck, Praa sands (apparently)
Now I've explained the revelevance of my comment, explain yours (combined harvester etc.) if it has any?”
by max power, st austell
Saturday, July 31 2010, 5:27PM
“Redneck, Praa sands
''Mr Pickles said: "This is a radical extension of direct democracy''
Apologies for reitteration but Doncaster is an excellent example any many ways.Pickles dispatches a cabal of commissars to overrule a democratically elected council for 'dysfunctionality' and 'in fighting' between councillors and senior officials. Not surprising in view of the gravy trains Davies, the straight talking mayor was derailing as cash saving measures and pure common sense. Also, consider that Doncaster was one the most corrupt councils in the country having had dozens of councillors (assorted total 74 arrests) hauled through the courts for corruption and false accounting. This is why Davies was elected, the people were sick of the party sleaze.
However, we don't read this in the newspapers.
Labour instigated this coup d'doncaster and the con/lib dems are implementing it. It all ensures our common purpose to follow the party line and underlines our sham democracy. This new Donnygate is nothing to do with in-fighting. The previous wholesale corruption, bribery and theft was tolerated as a whistleblower councillor informed the labour party 15 years before of the corruption and fed up with being treated as a nuisance, threatened and intimidated by other councillors, he went to the media.
So if any of us dreamt that a govt was to offer an end to corruption or end the extrordinary salary differentials or offer real democracy and transparency, or heed any concensus of public opinion, we'd have to wake up and apologise”
by Truro Voter, Truro
Saturday, July 31 2010, 4:40PM
“@ Illuminated eye
This is a comments board, not a court of law. I do not need to provide chapter and verse proof of *anything*.
All the statements I made about Roberson can be verified through a quick Google search. Indeed, a search through the thisiscornwall site and the Cornwall Council site will do the job
It is my personal opinion that membership of any 'secret society' compromises the independence and integrity of anyone holding a public position. I have expressed that opinion and will probably do so again.
I have never suggested that Robertson is not free to be a Freemason, a Buffalo or a lesser spotted tree frog. What any of us do in our own time is our own business. However, if there is any possibility that this spills over into public life such as leader of a Council it is cause for concern.
Now, I suggest we drop this; it is becoming tiresome. Tesco have a special offer (Truro branch, anyway) on Sangiovese Di Romagna - a toothsome Italian Red which I tried last week and have bought again today. Why not treat yourself to a bottle?”
by Illuminated eye, West Cornwall
Saturday, July 31 2010, 3:47PM
“Truro Voter.
It doesn't matter whether you raised a question about Masonic membership or not.
Mr. Robinson has every right to be a Freemason, but you should still provide documented proof on this site for all to see. It's easy to say something without good, solid proof Truro Voter.
Freemasonry has been around for centuries, and has nothing to hide.
They say honesty pays. And in freemasonry, it does.
Have a good afternoon Truro Voter.”