Fraud arrest linked to 74% tax rise council

A man has been arrested on suspicion of fraud linked to a town council whose residents have faced a 74% rise in its tax precept.

Cambourne Town Council in Cambridgeshire has previously said money for local projects was misused, and funds "must now be replenished" and used correctly.

The authority, which receives no central government funding, said a Band D property would now be paying about £150 extra a year for the town council's precept - its part of the council tax bill.

Cambridgeshire Police said a man in his 60s, from St Ives, was arrested on suspicion of fraud by abuse of position on Wednesday. He has since been bailed until 15 July.

In a statement, the council said: "As there is an active criminal investigation, the council is not able to comment on specific matters.

"We are complying fully with all legal obligations and will provide further information when it is lawful and appropriate to do so."

Cambourne Town Council, which represents about 4,350 homes, is in the third tier of local government, below the county and district councils. It can provide community centres, allotments, leisure facilities, bus shelters and grants to help local organisations.

It also receives Section 106 money, which are financial contributions from housing developers that are used for local infrastructure.

However, after a review last year, the council said it "accepts that restricted funds, including Section 106 monies, were previously used for revenue expenditure when they should not have been".

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