Service funding cap threat.(News)

The Office of the Deputy Prime Minister has made it clear that he expects council tax and precept increases in all authorities to be 'in low single figures'. This applies to all authorities, including fire authorities.

Stating that: "I am sure that council tax payers in your area would find it hard to understand large increases in their bills." Nick Raynsford threatened that Mr Prescott "is prepared to use his capping powers if necessary."

In making his statement, Mr Raynsford highlighted 30m [pounds sterling] over three years in transitional funding--should modernisation conditions be met--and government's payment tot new dimensions equipment and training as reasons that authorities budgets should not increase by much. …

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