Prescott: I'll cap big spending councils

The deputy prime minister said it was a "cheek" that voters experienced a hike in council tax when central government had already provided big increases in funding.

In a warning shot to spendthrift local councils Mr Prescott said some recent increases were unsustainable.

"The recent large rises in council tax, in some cases 40 or 50%, are simply not sustainable," he argued.

"Some councils have the cheek - and yes I call it a cheek - to hike up their council tax after receiving large increases and then blame it on the government.

"Let's be clear. I abolished the crude and universal capping but I did some retain some capping powers and I will if necessary use them in a targeted way on certain councils that make unreasonably large council tax rises."

Housing announcement

Mr Prescott - whose department is responsible for local government and the regions - also hailed his plans for English regional assemblies.

And he said Labour policies were helping to bring down crime, improve education and encouraging people to move back into many inner cities.

He also announced that state-owned land would be given over to allow the building of 1,600 affordable homes across the south east.

"I want to build communities where people want to say 'this is where I want to live, this is where I want to bring up my children'," he told delegates.