Why is council tax increasing so much in England?
Last year the average rise in England was 12.9% – the highest since council tax replaced the unpopular poll tax 11 years ago. A recent report by the Audit Commission said the whole local government finance system was “fundamentally flawed” and it is under review. Councils often blame central government by saying the grants they receive are not big enough. Some authorities have complained their spending responsibilities are increasing more than the grants, but ministers say this is accounted for. Local government minister Nick Raysnford claims central government funding of councils has increased by 30% in real terms since 1997 and says councils must improve efficiency. Sometimes this becomes a political issue, with Labour and Conservative councils lauded by their political parties for their financial management. In Scotland and Wales, the rises are not as high or controversial. What is capping? Capping is government action taken against councils it thinks have set a rate increase that i
