Select Committee on Treasury Minutes of Evidence


Note by HM Treasury

COUNCIL TAX ASSUMPTIONS

  Decisions on council tax levels are for local authorities to take, after consulting with their local electorate.

  The majority of local Government funding is provided by central Government. The totals for the Office of the Deputy Prime Minister's local Government programme were announced in the spending review and are shown in the table below. Other departments also provide resources to local Government.

OFFICE OF THE DEPUTY PRIME MINISTER: LOCAL GOVERNMENT

£ million
2002-032003-04 2004-052005-06
Local Government
Resource Budget37,376 40,38542,47345,539
Capital Budget274324 324349
Total Departmental Expenditure Limit1 37,64940,70842,797 45,888
1  Full resource budgeting basis, net of depreciation.


  Based on this it is for each local authority to decide how much to spend, in consultation with their electorate, and to raise council tax accordingly. It is not this Government's policy to preannounce spending totals or council tax increases for local authorities.

November 2002


 
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