(CLG) Healey confirms action to protect council taxpayers

Local Government Minister John Healey has today confirmed that the Government will take action to tackle excessive council tax increases set this year by two police authorities.

Subject to approval of an order laid before the House of Commons, Surrey Police Authority will be capped this year. It will be required to set a lower council tax in 2009-10 and arrange for residents to be re-billed. This is the first time under current legislation that the Government has had to take action twice against the same authority.

Action is also being taken against Derbyshire Police Authority to restrict its scope for council tax increases in future years.

John Healey said:

"In this tough economic climate council taxpayers are rightly looking to their local authorities to provide good value for money and keep council tax bills down.

"Thanks to a £2.9 billion funding increase this year and greater financial flexibility and predictability the overwhelming majority of authorities have done just that. The average household council tax bill will rise by 2.6 per cent this year - the lowest increase since council tax was introduced in 1993. There is simply no excuse for excessive council tax increases.

"The action we are taking today should send a message loud and clear to all authorities - that the Government will take tough action to protect council taxpayers, including requiring authorities to rebill where necessary."

Local authorities have been helped to deliver the lowest-ever increase in household council tax bills by the stability that the first-ever three-year finance settlement provides - including a 4.2 per cent increase in funding this year alone.

Local authorities have already made £1.6billion efficiency savings since 2008 and the extra £600million savings expected in 2010-11 will be recycled back into their own frontline services, or used to keep council tax down.

While council tax levels for 2009-10 will remain unchanged in Derbyshire, a notional budget requirement has been proposed against which the police authority's budget and council tax levels will be measured for future comparisons. They now have 21 days in which to exercise their right to challenge their proposed notional amounts before a final decision is taken.