SOUTHAMPTON residents could vote directly on council tax rises under a proposal to be considered by the city's Labour leaders Grassroots party members have prompted the ruling Labour group to weigh up the idea of a taxpayers' referendum.

Similar people power has led to a ten per cent hike in council tax in Milton Keynes, following a majority vote by householders.

The referendum suggestion was among campaigning ideas floated at a meeting of Southampton Labour Party attended by 60 members, including ten city councillors.

Deputy Labour group leader John Arnold said: "It will be considered by us in the next few weeks but we certainly haven't taken any decisions one way or the other.

"We have a process of annual elections and there is a real question about putting one aspect of council decision-making, albeit important, to the electorate separately."

Fellow Labour councillor Heather Corless said: "It was an interesting suggestion in the course of a discussion on wider issues rather than a firm recommendation.

"We're a long way from proposing it formally. It's not something we've spoken about before but some members felt it should be a campaigning issue."

Milton Keynes became the first local authority in Britain to go to the polls over council tax in a referendum held in February.

Nearly 45 per cent of the city's 150,000 voters took part, choosing a 9.8 per cent rise in preference to five per cent or 15 per cent. Residents voted by phone and post, producing a turnout higher than in any recent local elections. The cost was around £70,000.

Civic chiefs implemented the rise in April, saying they were "morally bound" to follow the verdict.

Council leader Kevin Wilson hailed it as a tremendous success. He said: "It has clearly shown by a wide margin that most people do care about local services and do not necessarily favour cheapest options."

Others were less impressed. Clive Lewis, local government reporter on the Milton Keynes Citizen, claimed many felt it was a Hobson's choice, adding: "The choice was limited to three rises and there was nothing about a possible reduction."

Southampton's opposition councillors have also voiced reservations. Lib Dem social policy spokeswoman Virginia Moore said: "We believe in referenda and empowering people but there are financial implications to this and much depends on the way questions are phrased. We would need to know a lot more about this before we'd be happy with it."

Tory group leader David Abraham said: "There are massive issues to consider such as cost and whether it would be binding on the council.

"And having regard to the relatively low turnout in recent elections would people really want to turn out at polling stations yet again"

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