Local Government Finance — 26 May 2004 at 15:45

I beg to move,

That this House notes that each year the Government has pledged a 'generous' increase in local government funding, yet council tax in England has on average risen by three times the rate of inflation every year since 1997; observes that the cumulative additional council tax burden since 1997/98 is £1,716 for a typical Band D household; deplores the failure of the Government to recognise its role in generating the underlying pressures leading to council tax increases, including new responsibilities, compliance requirements, red tape, targets and assessments imposed by central Government on local authorities; further notes that unfunded cost pressures force councils either to introduce disproportionate increases in council taxes or cut local front line services; and believes that this is a further indicator of growing centralisation and Whitehall interference in local communities, eroding local democracy and weakening democratic accountability.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

'notes that the Government has increased grant to local authorities by 30 per cent. in real terms since 1997, in contrast to real terms grant cuts under the previous government; endorses the firm action taken by the Government to reduce council tax increases in 2004–05 to the lowest level for nine years; notes that Labour councils have the lowest average Council Tax increases at 4.7 per cent. and the lowest average level of Council Tax at £870; congratulates the Government on its commitment to enhancing the delivery of public services by local authorities and notes the evidence from the Comprehensive Performance Assessment of significant improvement in local authority performance; welcomes the extension of substantial freedoms and flexibilities to local authorities, including the prudential borrowing regime replacing the capital controls imposed by the previous government; notes with concern that all of these advances would be jeopardised by the policies of the official Opposition which would freeze expenditure on most local authority services; contrasts the Opposition's current rhetoric with its track record of centralisation when in government; rejects its opportunistic approach; and endorses the Government's commitment to high performing local authorities delivering effective local leadership and quality public services in the most cost-effective way.'.

Question put accordingly, That the original words stand part of the Question:-

The House divided: Ayes 189, Noes 326.

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