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Debate Balance of Funding Review - 4 February 2004

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Mr. David Curry (Skipton and Ripon) (Con): It is nice to see that the Minister had prepared such a good impromptu response to that question. Does the review include an examination of capping powers? Does he intend to cap every council and preceptor, with the exception of combined fire authorities, that seeks an increase in council tax revenue of more than 5 per cent?

Mr. Raynsford: The right hon. Gentleman will know that the balance of funding review is looking at the long-term issues relating to the balance of funding between central and local government sources. The specific issue of capping is topical, for obvious reasons. The Government have made it clear that we expect all authorities, including fire and police authorities, to budget prudently. We have also made it clear that we expect local authorities to look for council tax increases in low single figures, and I have already written to some 54 authorities that have indicated that they were considering unreasonably large increases. We take our responsibilities seriously, and we are determined to ensure that the levels of council tax are brought down so that people are not confronted with unreasonably high tax demands.

Mr. Curry: That is an interesting choice of words. The Minister is now talking about budgeting prudently. A few weeks ago, he was waving a big stick at anyone who proposed an increase of more than "low single figures"—that was the expression that he used over and over again. He has sent out letters to some councils that are proposing increases of barely more than 5 per cent. and to others proposing increases in the teens. However, some councils that propose increases in the teens have not received a letter. Who are going to get all these billets-doux? Should not the Minister employ a better cuttings service, so that he can find out more about what is happening? When is going to send a billet-doux across the river to the new Labour candidate for the mayoralty of London?

Mr. Raynsford: It is appropriate for the right hon. Gentleman to talk about getting a better cuttings service, given the Conservatives' record in power of cutting services. [Interruption.] That was not a rehearsed answer, either. We have written to 54 authorities about which we have had indications that they might be considering increases in excess of 5 per cent. That is not necessarily an indication of the level at which we will cap, but it is right that authorities should be aware that the Government attach great importance to achieving increases in low single figures. That is the basis on which I have written to those authorities, and if there are others considering large council tax increases to whom I have not already written, I hope that the right hon. Gentleman will help to supply that information in respect of Tory authorities—which are among those proposing the highest increases—and I will be very happy to write to them.

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David Curry MP | House of Commons, London SW1A 0AA | tel: 020 7219 6202