Local councils will not receive any more money

Treasury minister John Healey warned local councils they would receive no more money than the funding agreement already struck allowed, while council taxes could be capped to stop them passing on higher costs. Councils, particularly in London, have been looking for greater funding to help in the economic downturn, but Healey said that the government would stick with its three-year deal under which councils will receive a 4.2 per cent increase in funding for 2009/10, and a 4.4 per cent increase in 2010/11, as they were not doing enough to make their operations more efficient. He added that reining in council tax was a government ‘top priority’.