TaxPersonal TaxCouncil tax referendums on the cards

Council tax referendums on the cards

The government is considering holding referendums in the future on above-inflation council tax rises, following the unpopularity of recent steep hikes.

Link: Council tax receipts increase

Nick Raynsford, the local government minister, described the plan as ‘an option in the future’, although he said there were no specific proposals at the moment, the BBC Online reported.

The proposal follows anger, and the threat of protests, from taxpayers after council taxes were increased by an average of 13% over the last year, some as high as 15.8%.

Raynsford argued that there was ‘no reason for unreasonable council tax increases’, saying: ‘We have given generous grant increases to all local authorities’.

‘This year was the first time ever that every local authority in England got an above inflation grant increase so we are expecting authorities to budget prudently and to come in with reasonable tax increases.’

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