The Court of Appeal reserved judgement yesterday on a challenge to a 62 per cent rate rise in a Labour-controlled London borough.

Ratepayers are seeking to overturn a High Court ruling in July which upheld the rate set in Waltham Forest, north east London, the capital's highest rated borough.

Two Judges held that several councillors opposed to the rate did not breach their duty to ratepayers by voting for it because of Party unity. Mr James Wadsworth, QC, for the Waltham Forest Ratepayers Action Group, said the High Court ought to have ruled that the councillors allowed irrelevant matters, such as political considerations, to affect their decision. Judgement is expected within ten days.