§ Ms Dari TaylorTo ask the Secretary of State for the Environment, Transport and the Regions if he has met the 12 local authorities he called in to discuss their increases in budget requirement and council tax; and if he will make a statement. [89803]
§ Ms ArmstrongOn 13 April the Secretary of State for the Environment, Transport and the Regions announced his decision not to cap any authorities. However, he decided to call in twelve authorities with the largest increases in budget requirement and council tax to put them on warning for next year.
I have now met the representatives of these twelve authorities. The meetings have been constructive. We discussed why the authorities had made such large increases and I explained that when we look at the budgets for 2000–01 we will be able to take this year's increase into account. Most of the authorities have told us that they do not expect to make such large increases next year.
However, it is not only these authorities that will need to consider next year's increase carefully. All authorities should remember that, under the new reserve powers, the Government will be able to look back at increases over two years.