Authorities which increase council tax by less than 3.5% to avoid triggering a local referendum could still face a public vote, Opposition MPs have claimed, after it emerged the cut off point for a poll could be far lower than ministers have inferred. The revelation could cause 'nth-hour chaos' for councils as they set their budgets, according to former local government and Treasury minister John Healey. Communities secretary, Eric Pickles, has claimed councils must have a 'direct democratic mandate' if they want to hike taxes by more than 3.5%.
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