Seven high spending local authorities have been identified for capping this year, Local Government Minister Nick Raynsford has announced.

The authorities identified for in-year capping are:

• Herefordshire
• Nottingham
• Telford and Wrekin
• Torbay
• Fenland
• Shepway
• Hereford and Worcester Fire Authority.

Authorities in line for action on next year's budget are Cumbria Police, Northamptonshire Police, West Mercia Police, Bedfordshire Fire, Durham Fire, Essex Fire and Nottingham Fire.

Nick Raynsford told parliament the average increase in England for this year will be 5.9 percent, compared with a rise of almost 13 percent last year.

Nick Raynsford said: "We have always said we would use our capping powers if authorities set excessive budgets. Today we are keeping that pledge.”

"This is not a step we are taking lightly. First and foremost it is for authorities to set their own council tax. But we have a duty to protect taxpayers from excessive council tax rises.”

The authorities which have been 'designated' for in-year capping now have a statutory period of 21 days in which to respond. The Government will then consider their responses and either:

• Set a maximum budget for this year and set the level for this budget.
• Withdraw the 'designation' and 'nominate' them for action against next year's budget.

Raynsford continued: "In the case of the further four fire authorities and three police authorities, we have decided to limit their spending powers for next year rather than cap this year's budgets.”

"We have constantly made it clear we were prepared to use these powers. And these warnings have already had an effect - many councils did lower their council tax rises. But some still set budgets which were excessive, which is why we're acting today".

Conservatives have criticised the Government's capping announcement, which they say, “will do nothing to address the underlying problems of soaring council tax.”

However, the CBI strongly backed the government for capping some council tax bills and stepped up its criticism of town hall waste.

The employers' organisation estimates that councils could achieve efficiency savings worth some £3bn a year, 15 per cent of the council tax bill.

It said some local authorities were trying "to use their get out of jail free card" by pressing for higher council taxes and changes to business rates.

John Williams, CBI Director of Public Services, said: "Its regrettable that we have got to this point but ministers are right to be tough because there is significant scope for delivering better value for money.”