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Flaws in Council Tax system contributed to record rises

The Audit Commission published a report (Council Tax increase 2003/04: why were they so high?) on 4 December 2003. The report identifies flaws in the current system of funding local government which contributed to this year's record council tax increases. Councils also contributed to the rises by allowing double-digit increases to become the norm.

The report recommends that a review of local government funding already underway should seek to reduce the proportion of funding coming from central government. It also urges greater transparency of how government calculates its annual grant.

The report can be viewed on the Audit Commission website.