John Prescott: accused of breaking capping commitment

Prescott interviewed on BBC Breakfast News

Government Meets Council Leaders

Council leaders welcomed the new approach, but did not shy away from some tough talking over the continuing financial squeeze on the provision of council services.

The new partnership approach will mean twice-yearly meetings at this senior level, with a series of lower-level meetings on specific issues. The Government needs councils to help deliver its commitments on smaller class sizes, welfare-to-work and the improvement of people's health.

Though the extra Budget money for education has been welcomed at local level, the squeeze on social services and other council departments is tighter than ever. Councils estimate that they are £1 billion short of what they need.

There is dismay too that Labour is retaining capping controls on council finances, despite its manifesto commitment that local decision-making should be less constrained by central government.

The manifesto said: "Although crude and universal council tax capping should go, we will retain reserve powers to control excessive council tax rises."

The councillors are pressing once again for the right to determine their own levels of spending.