THE controversial decision to cap an authority with one of the lowest council taxes in the country has been approved - despite protests from local MPs.

The Commons gave its blessing to the capping of Hambleton District Council, ignoring the warning of former Tory leader William Hague that it 'defied all common sense'.

The Richmondshire MP led the protests as Hambleton became one of seven authorities in the country to have a ceiling slapped on its budget.

The Government has insisted it is acting 'to protect council taxpayers against excessive increases'. But Mr Hague pointed out that Hambleton had the third lowest council tax of any shire district - and had proposed a tax of just £80 at Band E.

During the Commons debate Mr Hague said: "It defies all common sense to judge only by percentages at such levels.

"No minister can believe that excessive taxation is taking place in Hambleton District Council, or most of the other councils being debated today.

"The capping of this council is bizarre and unjustified."

The Tory MP for the Vale of York, Anne McIntosh, echoed his views and said the council believed it was being penalised for having a historically low council tax.

She also warned that sending new bills to every household in the district would cost £50,000.

However local government minister Phil Woolas, denied the cappings were in any way politically motivated.

He told MPs: "I am not in any way embarrassed by this policy. The policy of this government is to keep the council tax down."

Hambleton has already postponed the introduction of a concessionary travel scheme for young people in the district, as part of £196,000 spending cutbacks.

Also likely to be deferred in the near future are improvements to the authority's waste management and recycling programmes.

Hambleton had set a council tax increase of 17.6 per cent - or £12 a year on an average Band D property.

Ministers had earlier threatened to cap any rises above five per cent.