The DCLG has accused Rochdale MBC of being  ‘disingenuous and wrong' for claiming the authority could increase council tax levels by 3.5% without the need to hold a local referendum.

Local and national newspapers have reported Rochdale plans to use the Localism Act to exclude hikes to waste and transport bills from the headline rate of council tax increases.

Vicky Crossland, head of corporate finance at Rochdale Borough Council said: ‘We won't need to hold a referendum for the proposed increase in council tax of 3.5%.

‘The legislation which determines how to calculate the relevant basic amount of council tax, excludes the waste disposal levy and the passenger transport levy from the relevant basic amount of council tax calculation,' added Ms Crossland.

According to Ms Crossland, although increases in the waste and transport bills are greater than 3.5%, the council is proposing to increase the relevant basic amount of council tax below 2%.

A Rochdale source told The MJ while the level of the waste disposal levy is being finalised among Greater Manchester authorities, the council tax element would not be more than 2%, and on current calculations looks likely to be around 0.9%.

In response, a DCLG spokesman said: ‘It is disingenuous and wrong for any council to say they can hike basic council tax above two per cent without triggering a referendum.

'Local Authorities should be freezing council tax, not increasing it,' the spokesman added.  ‘People in Rochdale would be surprised if the authority decided to take more money out of the pockets of its council tax payers rather than accept the government grant to freeze.'

At the time of the local government finance settlement on 19 December, communities secretary, Eric Pickles, said councils had a ‘moral duty' to accept grant money to fund a council tax freeze.