Council hits out at capping threat (From Gazette & Herald)

Council hits out at capping threat

A THREAT to cap local council tax has raised the hackles of North Yorkshire County Council.

In a bid to keep tax increases low, local government minister Nick Raynsord, in a letter to NYCC, wrote: "We will be looking very closely at final budgets and council tax rises for next year and we will not hesitate to use our capping powers if that proves necessary."

NYCC is looking at a tax hike of 5.75pc and council leader Coun John Weighell said: "We understand the minister is writing to all councils consulting on council tax rises of more than 5pc.

"This is clearly a general shot across the bows, and takes no account of actual tax levels, the value for money provided by different councils or local circumstances.

"Only four shire counties in England have a lower tax level then North Yorkshire and our tax level is some 6pc below the national county average.

"Our proposed budget enables us to avoid service cuts. If the Government insists on capping, then we will have no choice but to reduce services."

Coun Weighell added that the Government has made it clear there must be no reduction in education - which accounts for 56pc of the NYCC budget - "so we would be forced to look at social care, roads and transport".

A spokesman for the office of the deputy prime minister said the councils contacted were chosen after research, including the monitoring of websites, press releases and "reliable" press reports, showed those councils might be looking at high council tax rises.

When it was pointed out the county council is looking at a rise of less than 6pc, the spokesman said: "We have said rises should be in the low single figures. That is not the low single figures."

Asked if low single figure rises were realistic given spending pressures councils face, the spokesman said: "Councils had above inflation increases in their settlements as well as extra money. That, combined with scope for efficiency and improvements can deliver single figure rises.

"We hope we won't have to use our capping powers, but if necessary, we will."

Updated: 09:36 Wednesday, January 21, 2004