New Clause 19 — Abolition of Capping Powers

Part of Local Government Bill — [1st Allotted Day] – in the House of Commons at 6:00 pm on 5 March 2003.

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Photo of Mr Matthew Green Mr Matthew Green Liberal Democrat, Ludlow 6:00, 5 March 2003

Has not the new formula in fact created a situation in which some councils, in order to move up to what the Government suggest they ought to be spending at formula spending share, would have to introduce large council tax rises? Bridgnorth district council, for example, set a band D rate of around £65 last year, although the assumed national council tax level is £185. The figure is used in the calculation of how much Government grant the authority receives. However, if the authority were to spend at the formula spending share—the level that the Government suggest might be appropriate—it would have to put in a 200 per cent. council tax rise. It has not done that; it has put in a 13 per cent. rise. However, this case illustrates the problem that the Government have created.