Council rejects Pickles’ attack on tax freeze

Mr Pickles said York Council is “clearly not acting in the interest of taxpayers” by turning down a Government grant that would cover the cost of freezing council tax for a second consecutive year.

The Labour-led authority has instead chosen to raise charges by 2.9 per cent, having decided that a freeze in 2012/13 would simply mean deeper cuts to services in the years to come.

But speaking in the Commons, Mr Pickles issued a veiled threat that the authority “is going to find itself in a very difficult position” as a result of its defiance.

“This is clearly not in the interests of York,” said the Communities Secretary. “The council has not protected its taxpayers. I am afraid that, unlike the 300-odd authorities throughout the country that have taken the freeze, this council is going to find itself in a very difficult position.”

York is one of just a handful of councils across the country which has decided to raise council tax this year, despite the Government’s stated policy of implementing a nationwide freeze.

For a second consecutive year, each local authority is being offered a Whitehall grant to cover the costs of freezing council taxes.

But several council chiefs have warned that in doing so, they will be creating a sizeable financial black hole next year when the Government grant is withdrawn.

Yesterday, York Council leader James Alexander said: “Eric Pickles needs to realise council finance officers have confirmed that if York took the Government’s ‘buy now pay later’ council tax funding option, it would mean £2.2m extra in cuts over the next two years.

“York will not be bullied or bribed by Eric Pickles or the Tory-led Government.

“This Government talks the talk about localism, but doesn’t walk the walk. As soon a local decision is taken against their increased cuts or higher council tax rise agenda, they threaten political retribution.”

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