§ 19. Mr. McWalterTo ask the Chancellor of the Exchequer what mechanisms are available to him to ensure that the resources he makes available to the Office of the Deputy Prime Minister for the 2004–05 settlement for local authorities will generate council tax rises in that year no higher than the rate of inflation. [144734]
§ Mr. BoatengThe extra resources for local authorities announced in November and in the pre-Budget report amount to an additional £760 million for local government on top of previously planned increases in grant. Following the provision of these substantial extra resources provided, excessive increases should not be necessary, but the Government have capping powers and are prepared to use them to protect local taxpayers from excessive council tax rises imposed by local authorities.