MEDWAY Council is to have its spending capped by the Government for a council tax increase which a minister has described as "excessive".

The Conservative-controlled council, which had set a 5.5 per cent increase, becomes one of the only two local authorities in the UK to fall foul of the Government, which had set a five per cent limit. The other was York City Council.

Local government minister Phil Woolas announced the decisioin to cap the two authorities in the Comnmons on Monday afternoon.

He said: "The public has a right to be proptected from excessive council tax increases."

Council chiefs were shocked by the decision. They were confident the Government would take into account the special factors which already mean Medway council tax payers fare better than the rest of Kent.

Council leader, Cllr Rodney Chambers, said the announcement left the council "between a rock and a hard place".

Capping means the council will not be able to raise the money it says it needs for the next financial year and will have to consider chopping services.

The council will now lodge an appeal and expects a Government response in June or July. It willl then know whether the recommended increase will remain at 5.5 per cent this year or whether it will have to set a lower rate and reissue council tax bills.

Cllr Chambers said: "Medway is a responsible council that gives extremely good value for money. We have the fourth lowest council tax of any unitary council in the country.

"We have a growing number of vulnerable adults and young people who need our services and they need a modest increase in resources too. Yet for a council tax rise of just 5.5 per cent the Deputy Prime Minister is thinking of capping us."

They point out that as well as having the fourth lowest unitary authority council tax in the UK. Medway also has the lowest council tax in Kent by about £90.

The council also faces "significant" price rises in learning and physical disabilities, and transport for children with special needs.

Cllr Chambers added: "It's also important to remember that £1million was clawed back by the Government in this year's grant from the previous year. Had this not happened we would only have had to increase our council tax by 4.2 per cent - well within Government guidelines.

"We will continue to press our case to the highest levels of Government."