Council Tax

I recognise the concerns that hon. Members have expressed today. I emphasise that capping is not something that we do lightly. Indeed, as I explained earlier, we have introduced a much more flexible system. In some years, no action has been taken, but we need to examine the overall situation and ensure that we get the right balance between local accountability and the Government's role in ensuring that council tax rises are not excessive. Of course, it is, first and foremost, for local authorities to set their council tax and justify it to local electors. However, we also have a duty to protect council tax payers from excessive increases. I want briefly to comment on several points that have been made. The hon. Member for Mole Valley (Sir Paul Beresford) talked about the overall financial situation. There has been a total increase of £48.4 million of Government grant—23 per cent. in real terms—between 1997 and 2009, and an increase of £32.5 million, which is 80 per cent. in real terms, between 2001 and 2009-10. There has therefore been a big increase. Even with the cap this year, Surrey will receive £5.7 million more. To answer the hon. Member for Chesterfield (Paul Holmes), capping principles were announced to the House on 26 March. They were: a budget requirement of 4 per cent.; a council tax of 5 per cent. Although it is obviously up to Surrey police authority to decide how to spend its budget, its figures show reserves of £9.4 million, of which £5.6 million is not earmarked. As I have said, it is up to the authority to decide how it uses that money.