The public will be given the power to veto excessive council tax rises, Local Government Secretary, Eric Pickles, has announced.
Council tax bills across England have doubled since 1997, pushing the average bill to £120 a month on a Band D home.
Under the new proposals laid out in a consultation today, any council that set its council tax increase above a set ceiling, approved in a democratic and transparent manner by Parliament each year, would trigger an automatic referendum of all registered electors in their area.
Residents would be asked to choose between the proposed rise and a 'shadow budget', which the council must also prepare within the defined limit. A no vote would leave councils having to refund taxpayers or give a credit at the end of the tax year.
Proposals announced today would mean councils have to defend their budget decisions and bill increases to the local electorate instead of Whitehall.
Eric Pickles said, "Hardworking families and pensioners were left feeling powerless and frustrated under the previous government, as council tax bills doubled while their frontline services like weekly bin collections were halved."
And he added, "This is a radical extension of direct democracy, as part of a wider programme of decentralising power to local communities. Power should not just be given to councils, but be devolved further down to neighbourhoods and citizens."
Read Eric's article in today's Daily Telegraph.