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Tories offer votes on council tax Tories offer votes on council tax
(about 2 hours later)
Councils should hold referendums if they want to bring in "high" council tax increases, says Conservative leader David Cameron. Councils should hold referendums if they want to bring in high council tax increases, says David Cameron.
If people voted against a rise, they would get a rebate the following year, he said. If people voted against a rise, they would get a rebate the following year, the Conservative leader explained.
This would replace the current system of central government "capping" bills in England and Wales. He said the current system of central government "capping" bills in England and Wales was "an old fashioned idea straight out of the bureaucratic age".
But Communities Secretary Hazel Blears said the proposal was "just another empty David Cameron gimmick".But Communities Secretary Hazel Blears said the proposal was "just another empty David Cameron gimmick".
Under the plans, outlined in a speech in east London, there would be a "trigger threshold", above which councils would have to hold a referendum.
'Excessive''Excessive'
Under the proposal, which was outlined in a speech in east London, there would be a "trigger threshold", above which councils would have to hold a referendum.
In England this would be set by Parliament, with the Welsh National Assembly deciding the level for Wales.In England this would be set by Parliament, with the Welsh National Assembly deciding the level for Wales.
Bills sent out to households would ask whether they supported any "excessive" increase, with a referendum form attached.Bills sent out to households would ask whether they supported any "excessive" increase, with a referendum form attached.
Mr Cameron told BBC Radio 4's Today programme that capping, introduced by Margaret Thatcher's Conservative government in the 1980s, had been necessary at the time to deal with "some very left wing councils" trying to "fleece" their residents.
I think it's right to give people the ultimate say David CameronConservative leaderI think it's right to give people the ultimate say David CameronConservative leader
Mr Cameron told BBC Radio 4's Today programme: "It's a lot better than capping. Capping is a minister sitting in Whitehall and deciding how much increased tax councils can put forward and literally legally banning councils from going beyond that level."
He said capping, introduced by Margaret Thatcher's Conservative government in the 1980s, had been necessary at the time to deal with "some very left wing councils" trying to "fleece" their residents.
'Local discretion'
But he said things had changed and he wanted councils now to have more control and freedom to respond to local circumstances, while offering residents a guarantee that council tax levels would not spiral.But he said things had changed and he wanted councils now to have more control and freedom to respond to local circumstances, while offering residents a guarantee that council tax levels would not spiral.
He added: "Yes it would mean in many cases that councils would not be able to increase tax because people wouldn't want that to happen but I think it's right to give people the ultimate say." "Yes it would mean in many cases that councils would not be able to increase tax because people wouldn't want that to happen but I think it's right to give people the ultimate say," he said.
Shadow budget
"I want to replace bureaucratic accountability with democratic accountability."
Councils favouring big rises in tax "must explain" to local taxpayers why they want to raise taxes by so much and what they would do, through a shadow budget, in the event of their plans being rejected, he said.
"Council tax referendum ballots would be sent out with the annual council tax bill - and if people voted against the rise, a rebate would be credited to the next year's bill."
Any local council can hold a local community vote on the level of council tax increase, and some of them already do Hazel BlearsCommunities SecretaryAny local council can hold a local community vote on the level of council tax increase, and some of them already do Hazel BlearsCommunities Secretary
He could not say how often it would be used, but stressed: "That's the whole point of more local control, more local discretion, different councils will do different things."
In his speech Mr Cameron said all governments end up centralising power, but added: "I want to prove that we will be different. That we really mean it when we talk about localisation.
"That's why I am announcing today a significant new element in our policy platform: the democratisation of council tax."
'Politically dangerous'
Local government expert Tony Travers, of the London School of Economics, told the BBC he thought it would not be "very different" from capping as many councils would simply spend up to the upper limit.Local government expert Tony Travers, of the London School of Economics, told the BBC he thought it would not be "very different" from capping as many councils would simply spend up to the upper limit.
He said it was a "limited reform" but not a step back "to the world where councils were themselves allowed to set their own taxes unimpeded, and that shows just how salient, how politically dangerous the issue is still seen by his party and by the government". He said the fact it did not propose going back to allowing local councils to set their own taxes showed how "politically dangerous" the issue still was.
The government has previously considered forcing local authorities to hold referendums if they propose council tax rises double the rate of inflation.The government has previously considered forcing local authorities to hold referendums if they propose council tax rises double the rate of inflation.
Referendum trials
And some local authorities - Croydon, Milton Keynes and Bristol - have trialled council tax referendums in the past. In Croydon and Bristol residents voted for the lowest possible rise in council tax.And some local authorities - Croydon, Milton Keynes and Bristol - have trialled council tax referendums in the past. In Croydon and Bristol residents voted for the lowest possible rise in council tax.
A spokesman for the Local Government Association said that voters were already able to vote against rises in council tax - via the ballot box in local government elections. A spokesman for the Local Government Association said voters were already able to vote against rises in council tax - via the ballot box in local government elections.
'Credibility' questioned Forcing councils to hold referendums on tax increases will have exactly the same impact as the current system of capping Vincent CableLib Dems
Councils should be freed from all Westminster interference when setting the tax, he added.Councils should be freed from all Westminster interference when setting the tax, he added.
For the government, Ms Blears said: "Any local council can hold a local community vote on the level of council tax increase, and some of them already do.... You don't need some new law."For the government, Ms Blears said: "Any local council can hold a local community vote on the level of council tax increase, and some of them already do.... You don't need some new law."
She accused Tory councils of driving up levels of council tax and cutting local services.She accused Tory councils of driving up levels of council tax and cutting local services.
Acting leader of the Liberal Democrats Vince Cable said: "The Tories have no credibility left on reforming the unfair council tax." And Vincent Cable, acting leader of the Liberal Democrats - who want the council tax scrapped and replaced with a local income tax - said: "Forcing councils to hold referendums on tax increases will have exactly the same impact as the current system of capping.
"No one will take the Tories seriously until they realise that council tax - which they introduced - is fundamentally unfair because it is unrelated to people's ability to pay."
Peter Facey, director of Unlock Democracy, said: "Replacing a national cap with a nationally set limit is hardly a step forward.
"The real priorities for reviving local government are devolving powers, financial autonomy and fair votes to ensure that councils are representative of the people they serve."