Councillors have defied the Government by approving a council tax hike just short of the threshold needed to trigger a referendum.

Last night a majority of Epsom councillors voted to increase council tax by 1.9 per cent in the coming year as the squeeze on its funding continues to bite.

Eric Pickles, secretary of state for communities and local government, has branded councils skirting just below the 2 per cent referendum threshold as "democracy dodgers".

But the Residents’ Association (RA) ruling party hit back at his interference and rejected a 1 per cent grant offered by the Government in return for a council tax freeze.

After the full council meeting, RA Councillor Neil Dallen, chairman of the strategy and resources committee, said: "Why should national government dictate to us what we should do?

"We believe Eric Pickles is interfering too much in local government and he ought to leave us to decide what council tax levels are."

Your Local Guardian:

RA Councillor Neil Dallen, chairman of the strategy and resources committee

In his budget speech, Coun Dallen said they are braced for a 13 per cent funding cut for 2014/15 and their grant will be £1.5m less than it was four years ago.

He said: "Central government expects local government to contribute more than its fair share to the public funding cuts."

Bearing in mind continuing efficiency savings, he said: "I am proposing a modest 1.9 per cent increase to the council tax for the next year, equating to 6p a week for the average Band D household.

"This provides over £100,000 that can be used to protect the valuable services that this Residents’ Association council knows the residents would not want to lose."

He said the long-term impact of accepting "one-off gift" payments equivalent to 1 per cent for two years in return for a freeze was too great because it would erode the council tax base after that period.

Surrey Police and Surrey County Council (SCC) have both decided to raise council tax by 1.99 per cent bringing the total increase for Band D households to £30.68 a year.

In the Labour budget response, Councillor Sheila Carlson said: "At a time when residents across Epsom and Ewell are facing a cost of living crisis we can’t support a proposal to take more from those who have less.

"It is unfortunate that the RA group has chosen to propose a 1.9 per cent rise in council tax. It is also unfortunate that the Con-Dem Government has yet again offered local authorities a phoney council tax ‘freeze’.

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Epsom Councillor Sheila Carlson when she was mayor in 2011

"As we are all aware, this offer gives with one hand but takes with the other. Accept the Government's freeze and residents will lose out in years to come, as vital services are put at risk from a funding gap."

In the Lib Dem budget response, Councillor Alison Kelly said: "We would take advantage of the Government’s proposals concerning council tax, which would offer a 0 per cent increase to our residents.

"We have shown we can balance the books and increase revenue."

The Conservative group had not nominated a spokesperson to respond to the budget.

Twenty-five councillors voted to approve the budget, including the council tax rise, and nine voted against it.

Lib Dem Mayor Councillor Colin Taylor abstained. Earlier this year Mr Pickles failed in his attempts to reduce the percentage increase that would trigger a referendum to 1.5 per cent.

The Lib Dems and Home Secretary Theresa May both opposed tightening restrictions on the flexibility of funding for local authorities and the police.

The Local Government Chronicle said one in three local authorities plan to increase council tax this year but it has been reported that all 32 London boroughs are likely to freeze council tax.

  •  Mole Valley Council will also raise council tax by 1.9 per cent for 2014 to 2015.

At a meeting of its full council last night in Dorking, councillors voted in favour of the rise and Band D council tax will be set at £157 for the next financial year.

A lengthy discussion was also had by councillors on whether to increase the allowance paid to them for conducting their council duties.

Despite passionate speeches from both sides of the debate, it was decided that at a time when so many people were suffering financial hardship it was not appropriate to consider increasing allowances.

  • Reigate and Banstead Council will increase its portion of the council tax by 1.94 per cent.

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