THE Government is expected to announce this weekend whether or not it will be capping Swindon's council tax.

Council leader Mike Bawden (Con, Old Town and Lawn) is bracing himself for a nail-biting few days.

If the Deputy Prime Minister John Prescott decides to intervene to veto Swindon's council tax rise of 7.3 per cent, then the finance officers will be burning the midnight oil for several days to re-write the budget in time to meet the final deadline.

Coun Bawden believes that Prescott's decision is "teetering on a knife-edge".

He said: "I'm sure he would like to cap us. I think he sees seven per cent as the plimsoll-line and anything above should sink.

"On the other hand, this would mean capping an awful lot of councils, so we might just get away with it, though, in all honesty, I don't believe we should.

"If we do get capped, it's going to be a mad scramble to get revised tax demands out to residents."

The Conservative administration had wanted a 6.3 per cent increase. This was torpedoed by a one-night Labour/Liberal Democrat coalition that forced through a 7.3 per cent hike.

Mr Prescott's office has leaked information that a hitlist of at least 10 councils will definitely be capped to make an example.

The Deputy Prime Minister has also made it clear to other government ministers that next year a ceiling of three or four per cent for council tax rises will be imposed on all local authorities.

There will be no allowances made for special cases and councils will have all discretionary powers removed over budget control.

Conservative MPs are claiming that this proposal is to prevent a government backlash at the General Election, which is expected to come just a few weeks after next year's council tax demands have been delivered. May 5, 2005 is the date MPs have pencilled in their diaries for the General Election.

Details of the forthcoming revaluation of council tax bands will also be delayed until after the General Election.

Coun Bawden said: "I have no objection to council tax being held down by the Government, just as long as Swindon gets a fair deal and receives in funding as much as similar unitary authorities, such as Milton Keynes. We ask for no more than equality."

But Swindon's pensioners' crusader Frank Avenell, 82, said he was prepared to go to jail in protest if Swindon was not capped.

"It will be disgusting and outrageous if Swindon Council is allowed to get away with this," he said.

Michael Litchfield