Prescott claims councils are listening to tax warnings

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Prescott claims councils are listening to tax warnings

Deputy prime minister John Prescott has claimed that local councils are heeding warnings issued by the government about rising council tax bills.

Ministers have warned councils that they will cap council tax rises if required, in order to prevent a repeat of last year's big increases. Tax rises for this year are due to be submitted by councils next month.

Mr Prescott told BBC1's Breakfast with Frost yesterday tax rises should be in "low single figures".

"There is a bit of limbo dancing still going on. But make no mistake, if you don't get under that line I am going to cap," he added.

Ministers are currently reviewing the system of local government financing.

Mr Prescott acknowledged there would have to be changes to the system in order to "find a greater consensus".

A recent survey by The Times suggests council tax will rise by an average of seven per cent this year.

Eleven councils proposing steep tax hikes were called last week to meet local government minister Nick Raynsford.

Mr Raynsford described the talks as "constructive" and said he was optimistic many councils would revise their plans.

There has been increasing opposition to council tax increases over the last few months, with some councils raising bills by almost a third.

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