By Jamie Hailstone Two councils have escaped being capped by Phil Woolas, after the local government minister opted to impose notional budgets instead. Mr Woolas had threatened to cap York City Council and Medway Council in March, after both announced council tax increases of 5.5%. The notional budgets for 2006/7 will limit both authorities when they come to set their council tax levels for next year. But the decision also means that neither council will have to create new budgets and issue revised bills this year. Mr Woolas set a budget of just over £148.1m for Medway Council, which is £382,000 lower than its actual budget for 2006/7. York’s notional budget of £97.4m is £285,000 lower than its actual budget. ‘The two authorities should be under no illusions,’ said Mr Woolas. ‘This is a serious step to take and we are disappointed that the actions of York and Medway have made it necessary.’ The minister’s decision not to cap the two councils was given a cautious welcome by both authorities. ‘Common sense has prevailed,’ said Medway Council leader, Cllr Rodney Chambers. ‘This is the only outcome that we could reasonably have contemplated, given the sensible way in which the council spends taxpayers’ money.’ The chief executive of York, David Atkinson, said while the council was pleased the Government had decided not to cap it, it was still disappointed about having a budget imposed. He said: ‘As we explained to the minister, our budget strategy was always to balance the pressures we faced in 2006/7 with a lower council tax increase in 2007/8. ‘However, this decision does mean that York will not have to reset its current budget, which would have meant us finding £455,000.’ j.hailstone@hgluk.com
