Local Government Finance

Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 4:01 pm on 8th February 2012.

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Photo of John Healey John Healey Labour, Wentworth and Dearne 4:01 pm, 8th February 2012

Can the Secretary of State confirm that a statement put out by his spokesman last night for the Local Government Chronicle is wrong? It states:

“For a local authority, a council tax referendum is triggered only if its basic amount of council tax increases by more than 3.5%”.

Will he confirm that the Localism Act, which he has just cited, mentions the “relevant” basic amount of council tax, which excludes levies? That means that local authorities with large levies are at a disadvantage in the system and are likely to face a referendum trigger amounting to significantly less than a 3.5% increase.