All other authorities have already set budgets within their capping
limits. Derbyshire will be required to make a partial reduction in
its budget. Council taxes in the county will be reduced accordingly,
The final cap is contained in a draft Order which will be debated by
a committee of the house of commons on 11 June.
In reply to a parliamentary question, Mr Prescott said:
'I have today laid before the house a draft Order, under section
57 of the Local Government Finance Act 1992, setting out our decision
on the final cap for Derbyshire CC.
'We have considered very carefully all the available relevant
information, including the case made by the council in support of a
higher cap, before taking our decision. We have decided to increase
the cap proposed for Derbyshire, by£2.9m.
'Derbyshire's cap is, in our view, reasonable, appropriate and
achievable in all the circumstances of the county council. This
decision will reduce public expenditure and the burden on council
taxpayers in the county by£1m in 1998/99. This will result in a
council tax reduction (at Band D) of around£4.31.'
Derbyshire CC was designated for capping on 7 April. The authority then had 28 days to either accept its proposed cap or to challenge and put forward an alternative amount. The authority decided to challenge.
The draft Order stating the final cap for Derbyshire will be
considered by a committee of the house of commons on 11 June and if
it is approved, as soon as reasonably practicable thereafter the
secretary of state will serve a notice on the council, thereby
setting its cap.