Councils told of ‘moral duty’ to freeze tax

Communities Secretary Eric Pickles said yesterday that authority leaders risk voters’ anger if they ignore a Government offer of a one-off handout to cover shortfalls created by the freeze.

But South Yorkshire Fire Authority, which meets next Monday, is one of several across the country considering defying the call, because officers believe accepting the grant may cause problems later.

In a report to members, officers point out the Government’s grant would cover spending in 2012/13, but would lead to a ongoing shortfall in later years, starting with a £700,000 deficit in 2013/14.

The report says that would mean further cuts to a service which is currently struggling to save £10m as a result of Government austerity measures.

It has emerged that at least 15 local authorities plan to increase the amount they charge in council tax, but Mr Pickles said a freeze was “practical help” every authority could offer residents.

He added: “A vote against the council tax freeze is a vote for punishing tax-rises. Local taxpayers will remember that decision next time they cast their vote. Councillors have a moral duty to sign up to keep down the cost of living.”

Prime Minister David Cameron has pledged £1bn to help freeze the levy.

Authorities can ignore the offer but must hold a referendum if they want to hike council tax by more than 3.5 per cent.

Whitehall figures show 142 councils have so far agreed to the freeze, but others, including Tory-led Surrey Council say increasing council tax is the only way to protect services.