Local Government Finance

Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 5:27 pm on 3rd February 2010.

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Photo of Alan Whitehead Alan Whitehead Labour, Southampton, Test 5:27 pm, 3rd February 2010

Will my hon. Friend reflect on the consequences for balancing of having a freeze on council tax? What, for example, might be the consequence in year 3 of the freeze, if it were imposed without replacing the money cumulatively lost through council tax, for central Government funding, especially if the figures were not entirely right? Unless central funding took over, would not the likely outcome be a huge avalanche of council tax rises in year 3, thereby decreasing still further the ability of local authorities to raise their own finance?

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