THE Government has sent a 'we are watching you' threatening letter to the leader of Swindon Council.

Minister of State for Local and Regional Government Nick Raynsford told Coun Mike Bawden (Con, Old Town and Lawns) that he was concerned to learn from reports in the Evening Advertiser that council tax could rise by 10.9 per cent. He warned it will not be tolerated.

"I am sure council taxpayers in your area would find it hard to understand how such an increase could be justified," wrote Mr Raynsford. "The Government has delivered another good settlement for local authorities. We have increased total grant by 5.5 per cent on a like-for-like basis.

"The Government has made very clear its view that given this further significant investment in local services, and the scope for efficiency improvements, authorities can and should deliver council tax rises in low single figures."

Then comes the sting in the tail: "We will be looking very closely at final budgets and council tax rises for next year," says Mr Raynsford.

"We will not hesitate to use our capping powers if that proves necessary."

Coun Bawden said: "This is a warning shot across our bows. But it's rich coming from a Labour minister when our own Labour group is pushing for another 15 per cent hike."