Inner London councils should increase their band D council tax 'closer to the national average' to raise hundreds of millions of pounds, the Society of County Treasurers (SCT) has told ministers. The proposal comes in its response to a Government's consultation on a new funding formula. SCT's consultation response read: 'Currently band D precepts are widely spread with some residents of inner London benefitting from the lowest bills in the country. 'Allowing the situation where certain regions are able to set such low council tax is both unfair and represents an untapped resource.' The SCT suggested that its proposal could raise more than £400m. In addressing a question on transitional arrangements, the SCT said local authorities that levied council tax below a certain level should be given flexible referendum principles so they could 'fund the difference between their current and new funding positions' - thus shortening the transition period. A Ministry of Housing, Communities and Local Government spokeswoman said: 'We will be considering the feedback from the sector before responding.'
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