Subject to approval from the House of Commons, five local authorities will need to issue revised council tax bills after having their budgets capped, Local Government Minister Nick Raynsford announced yesterday. The five are:
Hereford & Worcester Fire Authority has also been capped. They have had their cap set higher than originally proposed to reflect the amount that the authority can reasonably be expected to cut from its budget.
"I am satisfied there will be no danger to public safety from our decision to cap the authority and that it will be able to deliver a good service and all its statutory functions within the maximum budget proposed," said Mr Raynsford.
The Minister said the decisions show that the government is keeping its promise to act on high council tax increases.
Sailing close to the wind
Another local authority, four fire authorities and three police authorities are being set notional budgets for this year, against which future increases will be measured for capping purposes. These notional budgets are lower than their actual budgets for 2004/05.
"Nomination is not a soft option,” said Nick Raynsford. “The nominated authorities have a clear message for next year - rein in your budgets next year, or face capping. I want taxpayers to be reassured that they should not face excessive tax increases next year.”
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