The rule that prevents increases in capping limits for any council that budgets 12.5% or more above its standard sp...
The rule that prevents increases in capping limits for any council that budgets 12.5% or more above its standard spending assessment should be abolished, according to the Local Government Association.
In its formal consultation response to the provisional finance settlement for 1998-99, the LGA told local government minister Hilary Armstrong that the rule of 'absolute excessiveness' had blocked a number of councils from making any increase in their budgets for several years. Those caught by the rule include Hammersmith and Fulham LBC, Basildon DC, Harrogate BC, Ipswich BC, North Warwickshire BC and Pendle BC. These are unable to enjoy any benefits of the decision to ease capping in 1998-99.
The LGA met Ms Armstrong on Wednesday, bringing formal consultation on the settlement to a close, and suggested that the rule could be abolished or relaxed to help further ameliorate the capping regime. But it insisted that capping itself needed to be scrapped in 1999-2000.