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English council grant figures due Council tax increases 'below 5%'
(about 2 hours later)
Councils in England are expected to receive an increase in funding from central government of 1% above inflation over the next three years. Council tax bills in England must increase by less than 5% next year, the government has said.
Local Government Minister John Healy pledged an above-inflation rise in central government funding for councils over the next three years.
He said the increase would be 4% for 2008/09 and the following year, and 4.3% for 2010/11.
The Local Government Association says this is not enough to prevent council tax rises being higher than last year.The Local Government Association says this is not enough to prevent council tax rises being higher than last year.
It claims increases in social care and waste disposal costs are hitting local authorities hard.
But the government said the settlement was adequate and that it would "not hesitate" to cap "excessive" spending.But the government said the settlement was adequate and that it would "not hesitate" to cap "excessive" spending.
Elderly careElderly care
The funding settlement will take total central government funding for councils to £76.7bn by 2010/11.
Whitehall is keen to keep council tax rises substantially below 5% - last year's increase was just over 4% on average.Whitehall is keen to keep council tax rises substantially below 5% - last year's increase was just over 4% on average.
Local Government Minister John Healey told BBC Radio 4's Today programme: "We will not hesitate to use our capping powers to protect council tax payers, if we're looking at excessive rises in council tax as a result of the decisions that councils make." Local Government Minister John Healey said: "We will not hesitate to use our capping powers to protect council tax payers, if we're looking at excessive rises in council tax as a result of the decisions that councils make."
But the LGA argues that there are pressures on budgets, with some councils having to ration care for the elderly so that only those whose needs are substantial or critical will get help.But the LGA argues that there are pressures on budgets, with some councils having to ration care for the elderly so that only those whose needs are substantial or critical will get help.
It also cites the increasing cost of waste disposal, with landfill tax rising sharply in the next three years.It also cites the increasing cost of waste disposal, with landfill tax rising sharply in the next three years.
LGA chairman Simon Milton told Today: "My predictions is that council taxes will on average go up higher than last year. LGA chairman Simon Milton said: "My predictions is that council taxes will on average go up higher than last year.
"Last year was just over 4%. This year it will be probably around 4.5% on average."Last year was just over 4%. This year it will be probably around 4.5% on average.
"That will mask variation in some parts of the country there will be lower increases.""That will mask variation in some parts of the country there will be lower increases."
Harrow Council, in north-west London, says it has had to "tighten" its social care provision because of financial presures. Harrow Council, in north-west London, says it has had to "tighten" its social care provision because of financial pressures.
Leader Chris Mote said: "This was not a decision that the council wanted to take but we were forced to take action in response to the need of balancing the budgets and consistently low government grants."Leader Chris Mote said: "This was not a decision that the council wanted to take but we were forced to take action in response to the need of balancing the budgets and consistently low government grants."
Shadow local government minister Alistair Burt said: "Since 1997, council taxes have doubled. Now I fear that Gordon Brown is engineering three more years of inflation-busting hikes.Shadow local government minister Alistair Burt said: "Since 1997, council taxes have doubled. Now I fear that Gordon Brown is engineering three more years of inflation-busting hikes.
"These rises will hit families hard, and pensioners the hardest, especially given expected rises in energy bills and the higher cost of mortgages as fixed rates expire.""These rises will hit families hard, and pensioners the hardest, especially given expected rises in energy bills and the higher cost of mortgages as fixed rates expire."