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FINAL CAP ANNOUNCED - DERBYSHIRE

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Derbyshire CC has been given permission to spend an extra£2.9m, environment secretary John Prescott has announced ...
Derbyshire CC has been given permission to spend an extra£2.9m, environment secretary John Prescott has announced - which is£1m less than the budget originally set by Derbyshire.

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,

saving local council taxpayers some£1m.

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.'

NOTES

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.

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