§ Mr. HowardTo ask the Chancellor of the Exchequer pursuant to Table B12 of the pre-Budget report November 2002 (Cm 5664), on what basis he is forecasting a further 7.2 per cent. rise in council tax receipts in 2003–04; and what measures he intends to take to achieve this rise. [85543]
§ Ruth Kelly[holding answer 5 December 2002]: The Government do not set a target for increases in council tax receipts. Council tax rates are a matter for local authorities to set in consultation with their electorates. In line with this the Government do not operate a system of crude and universal pre-announced capping. The Government's approach was laid out in a note to the Treasury Select Committee on 19 November 2002.
The 2002 Spending Review gave local government a substantial three year grant increase, amounting to an average real increase of 3.9 per cent. per annum. This should allow authorities to deliver high quality public services without excessive council tax increases.
81WAs in previous years the figure for council tax receipts presented in the pre-Budget report is for the United Kingdom as a whole; projections for future years are based on assumptions about changes in the council tax rate, the taxbase, the collection rate and council tax benefit payments.