Police cap leads to new tax bills

The government said the move was to prevent excessive council tax rises

Residents in Surrey are to receive new council tax bills after the government confirmed it will cap the police budget for the current year.

The decision will mean £1.2m has to be spent on re-billing to save £1.6m.

Chairman of Surrey Police Authority (SPA) Peter Williams has branded the capping decision as "irrational, unreasonable and indefensible".

Local government minister John Healey said the government was taking tough action to protect council taxpayers.

The budget cap, confirmed on Wednesday, is the second in two years for the SPA.

If is going to cost £1.2m to recover £1.6m, frankly I don't think that is good business Peter Williams

It was allowed to keep the £191.5m budget it set for 2008/09, but was told then it must not exceed £189.6m, plus 5%, for 2009/10.

The SPA set a budget increase of 4.82%. However, this resulted in an increase in its share of the council tax which the government deemed was excessive.

The SPA said it would to now go through the courts to seek a judicial review of the capping decision.

The row follows an announcement by Surrey Police in February that it was to cut 144 officers and staff jobs because of government under-funding.

"Everybody wants to keep taxation at the lowest possible levels but the fact is that we also have to police Surrey and we need an income to do that," said Mr Williams.

"If it is going to cost £1.2m to recover £1.6m, frankly I don't think that is good business.

"Band D taxpayers will recover the equivalent of 6p per week under this arrangement."

Mr Healey said council taxpayers were looking to their local authorities to provide good value for money and keep council tax bills down.

"There is simply no excuse for excessive council tax increases," he said.

"The action we are taking should send a message loud and clear to all authorities.

"The government will take tough action to protect council taxpayers, including requiring authorities to re-bill where necessary."