Taxing times

It is why the coalition's promise to freeze council tax bills next year is welcome – it offers taxpayers some much-needed respite, particularly those on fixed incomes.

A short-term measure before the election, it is encouraging that Local Government Secretary Eric Pickles, the former Bradford Council leader, wants to make a longer-term policy commitment and limit future increases.

In some respects, his plan to force councils to hold a referendum if they propose a council tax rise that outstrips inflation, or an artificial limit set by Whitehall, is commendable and allied to David Cameron's devolution approach. It will certainly make some councils think twice about their proposed budgets.

The counter-argument, however, is that local councillors are elected to take difficult decisions – and taxpayers can already hold them to account at the ballot box.

Striking the right balance will not be easy. "People power" is an enticing concept from a political perspective, but it is not an easy policy to implement – as highlighted by the ongoing furore over two housing developments in Menston and whether the final decision rests

with Whitehall or Bradford Council.

These issues will remain until the Government sets out a precise remit for local authorities, and the functions that they will be expected to perform in these austere times.