Public given power to reject council tax rises

Eric Pickles, the local government secretary, has today revealed the UK government's plans for the future with regards to council tax increases. In future, being put forward as an example of the proposed changes, the public in South Yorkshire will have the chance to vote on excessive council tax hikes if they are above and beyond the increase in the retail price index. So how would this work?

In simple terms the UK government is set to pass legislation which would effectively limit the increase in council tax on an annual basis to that of the retail price index. Where council would prefer to increase taxes above and beyond the retail price index this will need to be cleared by a referendum with the council obliged to detail an alternative budget aligned with the change in the retail price index.

On this basis, it is highly unlikely, unless they were extenuating circumstances, that the UK public would look to allow their local councils to increase council tax above a predetermined measurement. However, this could lead to a reduction in services available in the short, medium and longer term and give taxpayers a very difficult predicament.