Voters set own council tax level

Taxpayers have voted for the second time to set the level of their council bills in a radical referendum.

An overwhelming majority of Croydon council's 240,000 voters opted for a 3.65 per cent increase in taxes - the lowest rise proposed - through postal, phone and internet ballots.

As a result, band D bills will go up by £29.64 to £853.53 from April.

Voters in Barnet are also being asked, through a questionnaire, to choose from proposed tax rises of 2.5 to 3.5 per cent, with the option of suggesting their own changes for the third year running.

Town hall chiefs will be encouraged by a five per cent upturn in the numbers participating in Croydon, more of whom voted on-line in this year's survey.

Labour council leader Hugh Malyan said: "Money paid out in council tax affects the spending power of every household.

"We were giving people real options with real consequences in terms of extra service delivery."

Postal and telephone voting declined slightly, with internet voting up from 3.4 per cent last year to 3.9 per cent. However, the Local Gover nment Association, representing Britain's local authorities, claimed such polls would not be widely adopted until internet use spreads.

Of 84,396 people who voted in Croydon, 61,365 favoured the lowest 3.65 per cent rise to maintain services. Only 15,143 voted for a 5.15 per cent increase and 6,787 for a hike of 6.65 per cent.

Croydon spent £150,000 on the referendum, which also included a vote on housing rents. The council will consider repeating the exercise next year.