The average increase in council tax in England this year is 5.9%

Several councils have pledged to fight the new limits imposed by Whitehall - after some Town Halls increased tax by up to 28%.

Others said services may be cut after the capping plans were revealed by Local Government Minister Nick Raynsford on Thursday.

Herefordshire, Nottingham, Telford and Wrekin, Torbay, Fenland and Shepway councils face action this year, as does Hereford and Worcester Fire Authority.

Michael Frater, the chief executive of Telford and Wrekin Council, who proposed a 9.8% council tax increase, is one of those appealing against the government's decision.

He said the appeal will focus on key facts, including having the lowest council tax in the West Midlands, which the council believes makes its case unique.

Mr Frater said the authority was being asked to shave �31,000 from its budget despite the cost of sending out new council tax bills being around �200,000.

Raynsford reveals capped councils

"We believe that we have a strong case against capping and hope that the government will recognise this and the needs of the area," he said.

Shepway District Council, which set the largest council tax rise of 28.9% for the coming year, also announced it will appeal against capping.

Council tax bills in Nottingham were to go up by almost 10% but this was judged by Mr Raynsford to be "excessive".

However a spokesman for the city council said if it was capped it would only amount to a 3p rebate for the average household.

The leader of Torbay Council, Chris Harris said the consequences of capping could be "dire" for residents as the authority had already cut the increase from 12% to 9.9%.

"After the council received a 'poor' rating from the Audit Commission last year, we were told to invest in services," he said.

There is obviously no joined up thinking in government circles Chris Harris, Torbay Council

"This we have done, which led to our improved rating. Now we are being told to cut our budgets. There is obviously not joined up thinking in government circles."

Police authorities in Cumbria, Northamptonshire and West Mercia along with fire authorities in Bedfordshire, County Durham, Essex, Herefordshire and Worcester and Nottinghamshire also face action.

Hereford and Worcester Fire Authority is to be capped in 2004-5 after it agreed an increase of 29.4% in the first year of setting its own budget.

The Chair of the Association of Police Authorities (APA) has condemned the cap on spending.

Dr Ruth Henig, chair of the APA, said forces faced pressures on funding this year and warned that this could see budget and service cuts next year.

All three are to appeal against the decision.

The councils and authorities have 21 days to respond to the government.