Council tax hike could be capped (From Stourbridge News)

Council tax hike could be capped

5:32pm Monday 18th February 2008 in Local By Martyn Smith

DUDLEY council is set to go head to head with the government over this year's Council Tax rise.

The Tory run council, which recently achieved a top four-star rating from The Audit Commission, is proposing a 4.8 per cent increase which would push the annual bill for an average band D property up to around £1,200.

If the full council approve the increase at a meeting on Monday March 3 ministers may decide to act by capping the rise at a lower level.

The first warning shots from Whitehall have already been fired to remind councils Prime Minister Gordon Brown will step in if he thinks rises are too high.

Speaking in the House of Commons, local government minister John Healey MP said: "We expect the average council tax increase in England to be substantially below five per cent. We will not hesitate to use our capping powers as necessary to protect council tax payers from excessive increases."

Dudley's proposed increase does not yet include extra charges for police and fire services which could add to the final bill.

A spokesperson for the department of communities and local government would not be drawn on an exact figure for what was considered "substantially below five per cent".

The spokesperson said: "We will announce capping decisions next month when we have seen all council's proposals."

Councillor Anne Millward, Dudley Council cabinet member for finance, said: "Although the council's arguments for a fairer share of government funding have been partially successful, our overall grant is still the lowest in the Black Country and £6 million less than the government itself says we need.

"The overall council tax increase will be less than £1 per week for most households and our council tax will still be the lowest in the West Midlands."