TAXPAYERS throughout the Malvern Hills district will be paying for increased spending by Malvern Town Council.

Malvern Hills District Council is being "fined" by the Government for the Town Council's actions, even though it has no control over its decisions.

It says the move will further increase Council Tax demands and as MHDC bills people throughout the district - not just in Malvern - everyone will be paying.

The District Council is going to be £40,000 out of pocket under the Government penalty scheme and says it is for reasons beyond its control.

New Government legislation has forced it to introduce a cheap bus fares scheme for pensioners this year - which accounts for a Council Tax rise of around 12 per cent and a £15,000 penalty.

And it is being fined a further £25,000 because Malvern Town Council - a separate body entirely - has increased its Council Tax levy by 61 per cent.

Coun Paul Cummins, MHDC's finance spokesman, has described the situation as "completely ludicrous".

He said: "What sense does it make to penalise us for, firstly, providing a service which the Government has told us we have to provide and, secondly, for what the town council does?"

The situation has arisen because MHDC is penalised for increases in its Council Tax above a certain level, by having some of its Council Tax benefit subsidy stopped.

Although MHDC collects the Council Tax, its levy is only one part of the bill, which includes spending for the County Council, Parish or Town Council, Malvern Hills Conservators and Police.

"What is particularly frustrating is that we've been trying to get the Council's spending rises down to the level of inflation for the next two years, we have worked extremely hard to make savings and then this comes along," said Coun Cummins. "We're trying to do the best for people but we have our hands tied behind our backs."

He said the Council's Executive Board would write to the relevant minister demanding an explanation.

Coun Tom Wells, a member of the Executive Board, said: "As far as the concessionary fares scheme is concerned, it's unfortunate that the Government promised some funding but that has not arrived. It's simply not fair to impose a strategy on the District Council and its taxpayers and then expect them to pay for it all."