Steps are being taken to allow local people to have the final say in a vote on excessive increases in council tax.
The new Government has already committed to help councils to freeze council tax. These new steps will replace top-down council tax capping by Whitehall, which gave no choice to local residents.
Under the new proposals, any council that set its council tax increase above a set ceiling, approved in a democratic and transparent manner by Parliament each year, would trigger an automatic referendum of all registered electors in their area.
Residents would be asked to choose between the proposed rise and a 'shadow budget', which the council must also prepare within the defined limit. A no vote would leave councils having to refund taxpayers or give a credit at the end of the tax year.
Local Government Secretary Eric Pickles said: "If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide."
"This is a radical extension of direct democracy, as part of a wider programme of decentralising power to local communities. Power should not just be given to councils, but be devolved further down to neighbourhoods and citizens."
Further information:
Communities and Local Government
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