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New funding system needed for local government - Teather

6.21.11pm GMT Wed 1st Feb 2006

Responding to the publication of the Local Government finance settlement, Liberal Democrat Shadow Local Government Minister, Sarah Teather MP said "Families run the risk of soaring council tax bills, no matter how much money the Government puts in, because of the skewed system of local government finance.

"All this money comes with strings attached, so that councils may have to make cuts in important services like care for the elderly.

"It's no good throwing a few more pounds into the kitty and hoping councils will stay quiet. We need a wholly new funding system, based on scrapping council tax and relocalising business rates."

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