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Overtaxing councils are bracing themselves for the possibility of budget capping this week, as the government is set to demonstrate a new resolve to tackle soaring council tax bills.
Local government minister Nick Raynsford will make a statement to MPs on Thursday and is expected to cap around ten councils as a sign to others that he is prepared to get tough on the issue.
A larger group of authorities will be formally warned that they face capping next year unless they keep council tax increases much lower.
Nick Raynsford is expected to focus on small district authorities, some of which have raised their precepts by up to 28 per cent. But larger authorities such as Torbay, Devon could be a target if he decides to make an example.
The minister has already hauled Torbay over the coals earlier this year, when the council was asked to explain the justification for it’s 9.9% raise in council tax. Ten other authorities were also asked to justify council tax rises.
Torbay Lib-Dem councillors believe there are strong arguments for Torbay to be treated as a special case as it seeks to rectify past problems and is hopeful it can avoid capping which they say will throw the authority into disarray. However, they know Mr Raynsford is under intense pressure to act against some councils to stem rising public anger about the level of council tax bills.
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