Town halls told: Lower bills

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Kingston-upon-Thames, which charges £1,580 for band D homes, and Richmond, where band D is £1,544, should reduce bills, Mr Hughes said.

Council tax levels are a big political issue in these areas. "Our colleagues there are very conscious of that," said Mr Hughes. "They will be doing all they can to hold council tax or bring it down in the next two years." He insisted that these councils have been underfunded historically but also highlighted how Southwark town hall had managed to hold the level of council tax for six years.

The Lib-Dems propose replacing council tax with a local income tax of about 3.5p in the pound, which could see many Londoners facing higher bills. But the party faces a tough battle to hold on to five seats in south-west London in the face of a Tory surge.