---

Guaranteed Minimum Pensions Increase Order 2007

The issue of where we start from is hypothetical because we have to start from where we are, but it is probably right that if we sat down with a blank sheet of paper and designed a system it would not end up as the system is at the moment. The noble Lord is right that we have to have due regard to resources, which is why the strategic approach that the Government have adopted is right because it has helped people into work as a means of helping them out of poverty and on a targeted basis it supports those people who are unable to work. That has to be a proper and effective use of resources. So far as council tax is concerned, I have a piece of paper somewhere that shows the increases in recent years, but I cannot put my hands on it. It has been in excess of the RPI, but council tax levels are an issue for local government. Since 1997, this Government have made a 39 per cent increase in real termsin funding from central government to local government, so dealing with these issues is a big responsibility for local government. We believe that there is no excuse for excessive council tax increases. Indeed, the approach that the Government have taken in bearing down on councils has borne fruit because people on the lowest incomes are able to access council tax benefit and as part of promoting that we need to make sure that people who are eligible access that benefit. On Question, Motion agreed to.