The Government has defended its plans to limit the amount some ‘quangos’ can charge for their services.

The move, unveiled by Communities Secretary Eric Pickles in the Queen’s Speech, would limit the amount bodies such as transport authorities could increase their levies by to two per cent a year.

Any rises above this level would trigger a referendum.

But bosses at transport authority Metro had said this could hamper its ambitious £1 billion plan to overhaul transport links across West Yorkshire and beyond, which relies on a five per cent increase in its levies each year.

Local Government Minister Brandon Lewis said unelected bodies should get the taxpayers’ permission to make such hikes.

He said: “The Passenger Transport Executives are unelected bodies. If quangos want to hike up council tax, they should get the consent of local taxpayers.”