Residents' veto on council tax hike (From Redditch Advertiser)

Residents' veto on council tax hike

7:03am Friday 30th July 2010

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Residents will be given powers to veto above-inflation council tax rises in England under new Government plans.

Communities Secretary Eric Pickles is announcing proposals to let local people decide whether to allow increases above a set ceiling - understood to be the rate of inflation - by holding referendums.

In what he calls "an extension of direct democracy", Mr Pickles suggests councils could be forced to refund residents and prepare an alternative budget if they veto a rise.

Mr Pickles said the threat of a public veto and refunded bills will make councils "think twice about their priorities and what they are asking of residents".

"If councils want to increase council tax further, they will have to prove the case to the electorate," he said.

Council tax bills across England have doubled in the past 13 years, with the average amount paid on a Band D property increasing from £688 a year in 1997-8 to £1,439 this year.

A consultation on the proposals will be launched, with plans to have the legislation in force by March 2012.

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