Communities Secretary Eric Pickles Credit: David Jones/PA Wire
Eric Pickles faces a significant revolt by town halls over council tax with more than 40% set to shun his plans for a freeze and raise local bills, a survey showed.
The Communities Secretary has promised local authorities in England the cash equivalent of a 1% rise in return for holding rates the same - the third such annual initiative.
Around 85% took up the offer last year but that number is set to plunge dramatically, according to figures compiled by the Chartered Institute of Public Finance and Accountancy.
With just over half of billing authorities already confirming their intentions, it found 41% intended to forego the grant and push up the tax for 2013/14.
Haringey council 'unable to comment' over council tax
Haringey Council is one of the councils being taken to court by local residents who are angry that they could end up paying hundreds of pounds extra in council tax.
Campaigners say the changes to council tax benefit will hit the poorest people in the borough hardest.
In view of the ongoing legal proceedings we are unable to comment further at this stage.
Poorest could be hardest hit by council tax changes
The government is cutting the amount of money it spends on council tax benefit by ten per cent
From April, council tax benefit will be abolished and councils will be responsible for administering its replacement called the Council Tax Reduction Scheme
Councils have to decide whether to absorb the ten per cent cut, or make the poorest people, who tend to be those who are eligible for the benefit, pay
Six million families receive council tax benefit, but pensioners are excluded from the change, meaning just over three million benefit
UK councils face high court action over council tax
UK councils are facing high court action, following the release of new council tax policies, which residents claim will hit the poorest hardest.
The Government has abolished Council Tax Benefit, handing control to local authorities, allowing them to determine how the money is allocated among claimants.
An aerial view of houses on streets in east London, as millions of low-income households face a steep rise in council tax bills from April Credit: Dominic Lipinski/PA Wire
The reduction scheme, will save the Government £470 million, as funding made available to local authorities is reduced by ten per cent.
This could mean councils are left with a shortfall if they intend to keep the level of existing payments.
Some 74% of local authorities in England are planning to increase their demands on families whose council tax is currently discounted or even covered in full by the Government.
Some households face increases in bills of more than £600 a year, research suggests Credit: Dominic Lipinski/PA Wire
Cambridgeshire is planning to increase council tax by 1.99%, which would avoid a local vote by a slither. The coalition has been urging local authorities to freeze the levy again this year, insisting a public vote should be held to approve any increase above 2%.
As councils publish draft budgets for next year, our council tax blog is keeping track of their council tax proposals. It already looks as though there will be more councils refusing the freeze funding and increasing council tax next year.
With several weeks to go until budgets must be finalised, we count 26 councils that have confirmed their intentions to increase tax levels.
We expect this number to increase in coming weeks. If we were betting people, we’d estimate around a third of councils will increase tax levels next year – somewhere around 100 councils.
Councils look set to defy Government with tax rise
The Local Government Chronicle (LGC) has supplied ITV News with its latest projections for local authorities' approach to council tax in the wake of Eric Pickles' funding attack, supporting predictions that a number look set to defy the Government.
The LGC said budget assumptions and funding proposals allow it to predict the council tax intentions of 74 councils, with the remainder of the 351 English councils still unknown. It said:
26 authorities are considering an increase of between 1.6% and 4.4%, though the majority will raise tax to 1.9%, keeping them narrowly within the Government's planned referendum threshold.
Two authorities, Hammersmith & Fulham LBC and South Holland District Council, plan to cut council tax. (Last year saw 35 councils opt for a cut by the decision deadline.)
46 authorities look set to obey Government calls and freeze council tax.
PM responds to minister's 'cheating' councils claims
Asked about Eric Pickles' accusation that English councils are "cheating" the taxpayer with planned rises in council tax, David Cameron's official spokesman said:
The Prime Minister's view is that the Government has provided funding to support a freeze in council tax and it is very good news that around one-third of authorities have already indicated that they will do that. Obviously, the final decision is up to the councils themselves.
The PM's view is that it is right to do whatever is possible, within current constraints, for families. That is why the Government has provided funding for another year of a council tax freeze. If councils want to go further, it is right that that (becomes) a matter for their electorate.
Labour MP for Gateshead, Ian Mearns, has criticised Eric Pickles' accusation that English councils who raise a "stealth tax" by 1.99% in a bid to avoid the Government's 2% referendum threshold are "democracy dodgers".
