Byers urges new curb on council tax

Former Cabinet minister Stephen Byers today warned Tony Blair of a "heavy political cost" if the Government fails to curb council tax rises.

The MP, a close ally of the Prime Minister, accused some council leaders of treating taxpayers as "soft touches". He called for urgent action by No10 to clip their wings.

Mr Byers, who used to oversee local government, spoke out as town halls prepared to announce average council tax rises of seven per cent.

He called for Whitehall's present capping powers to be replaced by powers to force a local referendum if a council wants to raise the tax by more than twice inflation.