The Chartered Institute of Public Finance and Accountancy (CIPFA) has responded with mixed emotions to the Government's announcement of council tax freeze arrangements for 2013/14.
Steve Freer, CIPFA's Chief Executive said:
"Many councils are having to resort to cutting services in order to balance their books. In many ways it is helpful if they can avoid increasing local taxes at the same time, particularly when household incomes are under such pressure."
“But it is also very worrying that we seem to be drifting to a position in which the council tax is effectively determined by central rather than local government. That's bad news for local democracy and sits awkwardly with the Government's own localism policy."
CIPFA also stressed the importance of confirming that the freeze grant funding is "new money" and not an allocation within the existing control total for local government.
Freer said, "It's one thing to make new money available to incentivise councils to follow a national policy lead. It's quite another to do so with resources which are already earmarked for councils' funding."
Contact: Shaun Bell, Head of Marketing
CIPFA Press Office
t: 0207 543 5701
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