§ Mrs. GilroyTo ask the Secretary of State for the Environment, Transport and the Regions what plans he has to use the reserve capping powers for 2000–01; and if he will make a statement. [138469]
587W
§ Ms ArmstrongIt is the Government's policy that local authorities should accept greater responsibility for setting their own budget and council tax increases. That is why we abolished crude and universal capping. However, we retain reserve powers to protect council tax payers from excessive increases. We identified three authorities whose council tax and budget increases in 1999–2000 and 2000–01 were at the top end of the range of increases for all authorities in England. I met those authorities in July. I have considered carefully the points they put to me. I have also taken account of the fact that the average council tax increases in England fell in 2000 for the second year running. On balance, I have decided not to use the new reserve powers this year. Against a background in which the Government have announced a significant increase in funding for local authorities for the next three years, all local authorities should budget responsibly.