Council chiefs have accused the Government of jeopardising its own infrastructure and flood defences agenda by pushing ahead with plans to tighten financial regulations on integrated transport authorities.

Under the Local Audit and Accountability Bill, unveiled in the Queen's Speech in May, all local authority bodies will be brought in line with the rules for triggering council tax referendums.

This would mean integrated transport authorities, the Environment Agency, National Parks Authorities, pensions authorities, and joint waste disposal authorities seeking to impose levies higher than 2% would require local approval.

Members of the Lords, including a number of vice presidents of the Local Government Association (LGA) discussed the key principles and purpose of the Local Audit and Accountability Bill during a second reading on Wednesday.