Public referendums on proposed council tax increases could put "unmanageable" strain on councils, it has been claimed.

Local government secretary Eric Pickles says people power should dictate whether authorities can in future increase council tax charges beyond a set ceiling.

Under the new proposals, any proposed council increase pitched above a level set by Parliament would trigger an automatic referendum of all registered electors.

Residents would be asked to choose between the proposed rise and an alternative budget which the council must also prepare within the defined limit.

A no vote would leave councils having to refund taxpayers or give a credit at the end of the tax year.

Recent similar council tax referendums in Milton Keynes, Bristol and Croydon have cost an average £120,000 to stage.

None achieved a turnout of more than 45 per cent.

Hull scrutiny councillors were today due to discuss the issue of referendums.

In a report prepared ahead of the meeting, the council's head of legal democratic services Susan De Val said: "There is a potential for councils to be burdened with unmanageable financial commitments due to referendum results and associated publicity making it difficult for the council to ignore the results.

"The latter aspect also has the potential for damaging the reputation of the council."

Council tax hikes in Hull and the East Riding have remained within government capping limits in recent years.

This year the charges for householders in Hull have been frozen while ministers in the new coalition government have called on all councils to freeze charges for next year as well.

Mr Pickles said public referendums on future proposed council tax hikes were another way of curbing excessive tax demands from local authorities.

He said: "Hard-working families and pensioners were left feeling powerless and frustrated in the past 13 years, as council tax bills doubled while their frontline services were halved.

"If councils want to increase council tax further they will have to prove the case to the electorate. Let the people decide.

"Power should not just be given to councils but be devolved further down to neighbourhoods and citizens."