Council Tax

I am interested that the hon. Gentleman is saying that the Liberal Democrats would abolish council tax capping. I mentioned earlier the risk that that poses to many council tax payers in local authority areas. It may not be desirable, but my argument is that it is necessary, which is why we have those powers in legislation. It is necessary in the particular case of Lincolnshire police authority this year. We are using those powers, and I have explained to the House and set out in the order precisely how and at what level we propose to do so. Parliamentary procedure is required to consider and approve the order in relation to Lincolnshire police authority for this year. Parliamentary procedure will be required for the three authorities that we propose to designate and restrict to a 3 per cent. increase next year and the following year. No parliamentary procedure is involved in setting notional budget requirements, as we have done for the other four nominated authorities. As I have said, the Government do not make decisions lightly about capping and the use of the powers. However, there is no excuse for setting an excessive council tax increase, and we remain ready to use the powers when necessary. I hope and believe that many people—particularly those on fixed incomes, such as pensioners—will welcome our determination to reduce the council tax burden in Lincolnshire this year. That will also help to protect residents in other authorities against excessive increases in future years. The reduction in Lincolnshire on the average band D property this year as a result of the action that I am proposing this afternoon will be more than £69. That, of course, will require rebilling in Lincolnshire. The extra costs will fall on the police authority, but it can have no complaints about that. Rebilling is an inevitable consequence of setting an excessive increase and of being capped in-year. All authorities know that, and the best way to avoid rebilling is not to set an excessive increase in the first place.