This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/6190222.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Councils warned over tax rises Councils warned over tax rises
(about 12 hours later)
Local authorities in England are to be warned by the government to keep council tax rises below 5% next year. Local authorities in England have been warned by the government to keep council tax rises below 5% next year.
Local government minister Phil Woolas is expected to tell councils he will not hesitate to cap "excessive" hikes. Local government minister Phil Woolas told MPs that he will not hesitate to cap "excessive" hikes by councils.
But council leaders say many authorities will struggle to make ends meet without extra funding. But council leaders say many authorities would struggle to make ends meet without extra funding.
The settlement comes weeks before Sir Michael Lyons delivers his long-awaited report to ministers on how councils should be funded in the future.The settlement comes weeks before Sir Michael Lyons delivers his long-awaited report to ministers on how councils should be funded in the future.
Mr Woolas is expected to tell Parliament today that government support for local councils in England will rise by 4.9% to £3.1 billion next year. Mr Woolas told Parliament on Tuesday that government support for local councils in England will rise by 4.9% to £3.1 billion next year.
Government must be honest and decide if it is serious about meeting the demographic, social, environmental and economic costs of the future Lord (Sandy) Bruce-Lockhart Local Government Association chairman Government must be honest and decide if it is serious about meeting the demographic, social, environmental and economic costs of the future Lord (Sandy) Bruce-Lockhart Local Government Association
But he will warn councils that any tax rises for the year 2007-08 must be kept below 5%. But he warned councils that any tax rises for the year 2007-08 must be kept below 5%.
In his speech, Mr Woolas is also expected to say that total revenue grants to English local authorities for the same period will reach £65.7 billion. In his speech, Mr Woolas also said that total revenue grants to English local authorities for the same period will reach £65.7 billion.
The Local Government Association (LGA) has warned that a large number of authorities will get just 2.7% - well below the rising costs of many council services.The Local Government Association (LGA) has warned that a large number of authorities will get just 2.7% - well below the rising costs of many council services.
Leaders say an ageing population and tighter regulation of waste disposal is putting extra pressure on councils and those receiving the minimum grant increase would face "very real difficulties" in balancing the books.Leaders say an ageing population and tighter regulation of waste disposal is putting extra pressure on councils and those receiving the minimum grant increase would face "very real difficulties" in balancing the books.
If government grants do not increase further, the only solutions for some authorities would be to cut services or implement an above-inflation council tax increase, the association has warned.If government grants do not increase further, the only solutions for some authorities would be to cut services or implement an above-inflation council tax increase, the association has warned.
'Pressure''Pressure'
LGA chairman Lord Bruce-Lockhart said: "It is the council tax payer that has funded the 'unprecedented increase in spending', as government grant has not kept pace with the demands on local government, including rising demand and the costs from new legislation."LGA chairman Lord Bruce-Lockhart said: "It is the council tax payer that has funded the 'unprecedented increase in spending', as government grant has not kept pace with the demands on local government, including rising demand and the costs from new legislation."
He added: "Government must be honest and decide if it is serious about meeting the demographic, social, environmental and economic costs of the future."He added: "Government must be honest and decide if it is serious about meeting the demographic, social, environmental and economic costs of the future."
But Mr Woolas said no government had ever put such sustained investment into local services and that there had been an increase in real terms of 39% in grants since 1997.But Mr Woolas said no government had ever put such sustained investment into local services and that there had been an increase in real terms of 39% in grants since 1997.
"We've provided a strong and stable funding basis for local services, and we expect local government to respond positively with an average council tax increase in England in 2007-08 of less than 5%," he said."We've provided a strong and stable funding basis for local services, and we expect local government to respond positively with an average council tax increase in England in 2007-08 of less than 5%," he said.
"We have used our reserve capping powers in previous years to deal with excessive increases and won't hesitate to do so again if that proves necessary.""We have used our reserve capping powers in previous years to deal with excessive increases and won't hesitate to do so again if that proves necessary."
Minimum increasesMinimum increases
Mr Woolas said minimum grant increases have been set at 2.7% for shire councils, fire and rescue authorities and authorities with education and social services responsibilities, and at 3.6% for police authorities.Mr Woolas said minimum grant increases have been set at 2.7% for shire councils, fire and rescue authorities and authorities with education and social services responsibilities, and at 3.6% for police authorities.
Conservative local government spokesman Eric Pickles blamed new government schemes for driving up council taxes. Conservative local government spokesman Eric Pickles said council tax had "rocketed" since Labour came to power in 1997, rising by 84% to £1,268 for a band D property this year.
He said: "The Government should either finance these - and admit the implications for national spending - or not implement them at all and allow local discretion and local priorities to be paramount. The minister can't have it both ways." He said a 5% increase this year would mean an extra £63 for a typical pensioner couple or family.
And Liberal Democrat local government spokesman Tom Brake said many councils will be faced with putting up council tax or cutting services because of "burdensome red tape issued from Whitehall". He had calculated that the average bill could hit £1,500 if similar rises occurred until the end of Labour's third term of office.
He expressed concerns that capping powers would not apply to Londoners - who could end up paying for the 2012 Olympic Games over 30 years.
And Liberal Democrat local government spokesman Tom Brake said many councils would be faced with putting up council tax or cutting services because of "burdensome red tape issued from Whitehall".