Council Tax

As I have said, any authority that is going to set an excessive increase knows that it will have to carry out in-year rebilling. It is that authority's responsibility to take that into account when it decides to set a higher increase than anywhere else. The hon. Gentleman may feel it is right for the council tax payers of Surrey to pay an extra £1.6 million. Presumably that is his proposition. However, we believe that there is a duty on the Government to curb excessive council tax increases, particularly in difficult economic times. We recognise the inflexibility of the system introduced by the hon. Gentleman's Administration. We adjusted the system, and for a number of years there was no capping whatever, but we have to take a balanced view. We are trying to get the balance right, to ensure that council tax payers are protected from excessive increases, particularly during these difficult times. It is not a bolt from the blue. No authority can think, "Oh goodness me, we didn't think about the rebilling costs." Authorities know about the costs when they set the increase, so it is their responsibility. However, as I said, although last year Lincolnshire police authority said that rebilling would cost about £1 million, the actual figure came out at £380,000. I am sure the hon. Gentleman will agree that it is important that we see the actual costs. My right hon. and hon. Friends met the authorities and listened to their representations, but if there is the flexibility for a notional budget one year and they still set excessive increases it is important that the Government take action.