Half of boroughs oppose Tory council tax freeze

An Evening Standard survey found that 16 out of 32 boroughs in the capital were planning to reject the proposals should the Tories win power.

They claimed the freeze would result in "years of misery" for local taxpayers with town halls forced to put up council tax in the following years to pay for it.

Individual borough leaders warned it would inevitably mean cuts to essential services such as schools, housing and rubbish collections.

Mr Osborne's plan to curb one of the most unpopular household bills was aimed at helping middle-income families during the economic downturn.

It was thought to be a sure-fire vote winner coming after last year's surprise inheritance tax cut pledge which helped turn round Tory fortunes.

However, despite the shadow chancellor's expectation that "100 per cent" of councils would sign up, every Labour and Liberal Democrat-run borough in the capital told the Standard they opposed the plans. There have also been grumblings behind the scenes from some Tory councillors.

Their opposition could stall Mr Osborne's proposal as it is likely to be replicated across the country where more than 170 councils are not under Tory control.

Hackney Mayor Jules Pipe, leader of the London Labour group of councils, said that while boroughs would welcome extra money to help reduce bills, their hands would be tied over the shadow chancellor's plans.

"He gives little idea of where funding for this measure will come from or what real impact it will have on local council budgets," he told the Standard.

"Without giving a clear idea of what funding a Conservative government would give to councils for services, it is very difficult to see what difference these plans would make, leaving this proposal as little more than a shallow soundbite.

"In practice, they are likely to withhold some existing grants to councils in order to pay for council tax reduction, which would mean that overall there would be no extra money for councils and some services to the vulnerable may actually end up losing funding."

Sutton councillor Sean Brennan, leader of the Lib-Dem group of councils, added: "Tories say they want to free councils and then offer a confidence trick like this.

"Far from repairing the roof while the sun is shining this is like opening the door to a loan shark - a quick fix now with years of misery to follow.

"With inflation at 4.7 per cent councils could only meet Osborne's rules by cutting vital services."

Mr Osborne delighted the Tory faithful at the party's Birmingham conference by promising to freeze council tax for at least two years.

He claimed the move would mean a saving of £70 in the first year for an average household in a band D property and £140 in the second year. His promise came with a crucial caveat, however, that for people to qualify, their local town halls will first have to tighten their belts and limit their planned rises to a maximum of 2.5 per cent.

That figure is slightly below the recent average council tax rise for London of 2.7 per cent and well below the national average for this year of 3.9 per cent.

If councils were to manage that, a Tory government would provide extra funds to wipe out the rise altogether. The cost - £500 million in year one rising to a billion pounds - would come from cutting Whitehall spending on advertising campaigns and consultants.

The Tories claim that council tax under Labour has more than doubled, from £688 for a band D home to £1,374, since they took power.

LONDON COUNCILS THAT WOULD REJECT OSBORNE'S PLAN

Islington (Lib Dem)
Kingston (Lib Dem)
Richmond (Lib Dem)
Southwark (Lib Dem)
Sutton (Lib Dem)
Brent (Lib Dem/ Tory)
Camden (Lib Dem/Tory)
Waltham Forest (Labour/Lib Dem)
Barking and Dagenham (Labour)
Hackney (Labour)
Haringey (Labour)
Greenwich (Labour)
Lambeth (Labour)
Lewisham (Labour)
Newham (Labour)
Tower Hamlets (Labour)