The existing system of local authority funding is based on a range of Exchequer grants, combined with a variety of local income sources, including domestic service charges. It is entirely a matter for local authorities to decide, at their discretion, whether to levy charges, the scale of such charges and arrangements for their collection.
The whole issue of local government funding, including service charges, was examined as part of the professional study of local government financing, published last June. I intend to publish a strategy paper on local government reform before the end of the year, which will address all the issues involved.