The government is stepping up pressure on Brighton and Hove City Council to freeze council tax.
Eric Pickles, the government minister responsible for councils, said that councillors had a moral duty to accept a one-off grant payment in exchange for a council tax freeze.
But one local politician dismissed the government’s offer as a headline-grabbing gimmick.
Councillor Jason Kitcat, the council’s cabinet member for finance, said: “It’s like a payday loan in that you get a bit of cash upfront but you’re worse off in the long run.”
The Green administration in Brighton and Hove wants to put up council tax by 3.5 per cent. A higher rise would trigger a local referendum.
The council was the first of more than a dozen local authorities to reject the one-off grant which is estimated to be worth £3 million to Brighton and Hove.
Three of the councils resisting the inducement are Conservative-controlled.
Meanwhile, more than 140 local authorities have indicated that they will take the cash and freeze council tax levels in their area.
Punishing
Mr Pickles, the Communities and Local Government Secretary, said: “Freezing council tax is practical help every councillor can offer their constituents.
“A vote against the council tax freeze is a vote for punishing tax rises.
“Local taxpayers will remember that decision next time they cast their vote at the ballot box.
“Councillors have a moral duty to sign up to keep down the cost of living.
“Anything less is a kick in the teeth to hard-working decent taxpayers.”
Councillor Kitcat said that the government’s offer seemed attractive on the surface but it came with strings attached.
He said: “If we took it, we would have to cut £5.4 million more next year or put up council tax by 8 per cent.
“We believe people want to protect services and jobs and that’s the approach we’re taking.”
