30/07/2010

Manchester property owners 'could veto council tax hikes'

Landlords and new home owners in Manchester and the rest of the UK will be able to veto council tax increases in the future, according to the government.

Communities secretary Eric Pickles announced today (July 30th) that the new proposals will mean that any rate rise above a set ceiling will automatically result in a referendum for registered voters in the area.

Local authorities will have to prepare 'shadow budgets' if voters are unwilling to accept hikes.

The coalition's move aims to hand back power to voters, and reverse a trend from the previous Labour administration for capping excessive rates from the centre.

Commenting on the new proposals, the minister said: "If councils want to increase council tax further, they will have to prove the case to the electorate. Let the people decide.

"The new government is committed to a review of local government resources, but such reforms must go hand in hand with measures to protect the interests of local taxpayers."