§ 21. Mr. FlightTo ask the Secretary of State for the Environment, Transport and the Regions what estimate he has made of the level of changes in council taxes in shire areas over the next three years. [78836]
§ Ms ArmstrongDecisions on the level of council tax are a matter for each authority.
§ Mr. WoolasTo ask the Secretary of State for the Environment, Transport and the Regions what would be the average council tax for each local authority in England if each authority's net revenue expenditure in 1999–2000 was set at the provisional capping level and, excepting the receipts from each authority's share of NNDR, had to be met entirely from council tax receipts. [80277]
§ Ms ArmstrongWe made a Manifesto commitment to abolish crude and universal capping. There were, therefore, no provisional capping levels for 1999–2000.
§ Mr. FitzpatrickTo ask the Secretary of State for the Environment, Transport and the Regions if he proposes to use his capping powers for 1999–2000; and if he will make a statement. [80718]
§ Mr. PrescottThis year, we fulfilled our Manifesto commitment to abolish crude and universal capping. We did not announce capping limits in advance. For the first time since the introduction of the council tax, authorities were not told what to do by the Government. They were able to make up their own minds on their budgets, taking account of their local circumstances and the views of local people.
The vast majority of authorities in England have exercised this new discretion sensibly and a range of council tax increases have resulted. Indeed, some authorities have frozen or reduced their council taxes. Others have made large increases, which I trust will not be repeated. As a result, average Band D taxes rose by 6.8 per cent. this year, compared with 8.6 per cent. rises last year. I have therefore decided not to cap any authorities this year.
Although the general response has been sensible, there are some exceptions. Despite the most generous Local Government Settlement for years, some authorities have made large increases both in their budgets and in council taxes. I have looked particularly closely at authorities with increases in council tax over 9 per cent. I have decided to call in twelve with the largest increases in budget requirement to the Department to discuss why they have made such large increases and put them on warning for next year. I will be telling these authorities that, when I use the new reserve powers to decide if their budgets for 2000–01 are excessive, I will look back at their increases over two years. This is a new power.
The authorities are Ashfield, Herefordshire, Huntingdonshire, Kingston upon Thames, Milton Keynes, Norfolk, Shropshire, South Cambridgeshire, Tewkesbury, Torbay, Tyne and Wear Fire and Civil Defence Authority and Woking.
51WOther authorities have also made large increases in council tax. I will not be calling these authorities in, but any authority which has increased its council tax by more than the average this year will need to be particularly careful when deciding next year's budget. All authorities, including police authorities, should remember that I will be looking at every local authority budget when I decide whether and how to use my new reserve powers next year. As well as looking at the latest increases, I will be able to look back at increases over two years. I will also be able to designate authorities both in year and for the following years. Authorities should be in no doubt that we will act if council taxes rise unacceptably.
Overall, however, I am pleased that most authorities have behaved responsibly as expected, justifying the trust we placed in them when we did not announce capping limits in advance. As a result of the outcome of the Comprehensive Spending Review, local authorities will have two more years of good increases in grant. I am looking to them to continue to play their part in delivering better services with reasonable council tax increases.