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London set for lower council tax hikes than rest of nation
Katharine Barney13 Feb 2009
The majority of Londoners are facing lower than average council tax rises as boroughs battle to keep costs down during the recession, it was revealed today.
Figures show the estimated average council tax bill will rise by 1.6 per cent. The national average is predicted to be 3.5 per cent.
Council chiefs have revealed they intend to keep increases to a minimum to help Londoners through the economic downturn, with one council even cutting bills by three per cent.
They say the increases have been kept low through staff redundancies and drives to become more efficient.
The news comes despite low government funding levels for the councils.
Stephen Greenhalgh, leader of Hammersmith and Fulham council, which has slashed council tax by three per cent for the third year running, said: "Given the current economic uncertainties it has never been more important for councils to help hard-working taxpayers by taking less of their money while maintaining quality front-line services."
The only borough to raise its part of the council tax by more than the national average was Richmond, which is putting it up by 4.33 per cent.
But Richmond council blamed this figure on a low government grant - £148 per head compared to a London average of £545 per head.
Stephen Knight, Richmond deputy leader and cabinet member for resources, said it had been difficult to balance the books this year.
"I recognise that any increase in the current climate is not welcome and we will continue to work with both local businesses and individuals to provide all the support we can," he said.
"We provide a range of very good services to many in our community, including the most vulnerable, and I believe that it is important that the efficiency and standards of these services are improved."
In Kensington and Chelsea thousands of council taxpayers are to receive cash handouts to help them survive the recession.
The move will cost the council about £4million but will see all residents £50 better off.
This means that those on the lowest council tax band will see an effective cut of 6.8 per cent on this year's bill. In the highest band the £50 rebate wipes out the planned rise of 3.2per cent.
Merrick Cockell, leader of Kensington and Chelsea and chair of London Councils, said the cuts were a result of efficiency savings and shelving long-term projects.
He said: "Councils recognise that people are feeling the pinch and have responded to that by keeping council tax as low as we can.
"Three months ago councils were looking at different figures but with the economic downturn they've gone back to the drawing board.
"There's an element of looking at what your neighbours are doing and feeling the pressure to do the same."
So far 23 councils have proposed or agreed on figures for council tax bills in 2009/2010 with the remaining 10 expected to reveal figures in the next month.
Reader views (21)
What no-one commenting here has taken account of is that it is only those living in London Boroughs (mine is LB Bromley) that will be saddled for the bill for the 2012 Olympics, so if they don't go up much this year, they certainly will in the years to come! No other part of the UK will have to help pay for them though.
- Sue, Orpington, Kent, 16/02/2009 09:07
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Westminster to freeze its council tax?
I wonder who will pay for that?
- Ex.Londoner, London, 14/02/2009 00:33
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What a load of spin from Richmond Council.
The highest council tax increase in London and Meal on Wheels for the very most vulnerable in society have been axed.
Shame on you Richmond Council!
- John, Richmond, 14/02/2009 00:25
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does that mean council leaders will now get lower than extraordinary salaries, expenses and ring fenced pensions?
will the lower rates be made up by more draconian parking enforcement, fines for recycling crimes and other petty fobbing clamp downs by over zealous council dogsbodies?
- M.O'Brien, london.uk, 13/02/2009 17:21
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An increase? after the buses & gritting fiasco and savage job cuts across the board. They should be freezing the damn council tax. What a nerve.
- Simon Caleb, London, England, 13/02/2009 17:12
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Poole in Dorset are proposing a 4.8% increase with the councillors having awarded THEMSELVES HUGE allowances increases to be paid for out of the 4.8% council taxpayers' increase.
- Raymond, Poole, 13/02/2009 16:53
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After home helps,meals on wheels users and children waiting to be fostered.Who will Hammersmith and Fulham hit next to fund the cut in council tax?.
- Colin, barking essex, 13/02/2009 16:45
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Mcw, people in Scotland pay a heck of a lot more tax in the first place. Go and read up a bit more about it before spouting your nonsense. The south-east of England has for years drained double, if not triple, the amount of tax per head from the Scottish people compared to the English.
A quick example - a friend of mine living in an impoverished area of Glasgow pays twice as much council tax for his 1 bedroom flat than I do for a 2 bedroom flat in Balham.
- Jock, London, 13/02/2009 16:26
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And of course all those people who live in the Royal Borough of Kensington and Chelsea need £50, don't they? Perhap the better off residents will donate it to charity.
- Val Daniels, Mijas Costa, Spain, 13/02/2009 16:17
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Lowest council tax rises in the country, and some of you still have the nerve to complain...Unbelievable.
- Jock, London, 13/02/2009 16:06
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Does anyone know what they get for their Council tax? Garbage removal and what else? Sweep the streets? Library ? The fact is its a make work scheme for totally unproductive people. Nothing more than a glorified ATM for the feckless. The cost of local government could easily be cut by simply freezing the budgets, impose a hiring freeze and bingo ... taxes will fall by 10% a year!
- James Ritchie, Oyster Bay Cove, NY, USA, 13/02/2009 15:55
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Was not surprised to see Havering was one under from the highest.
The service from this council gets worse year by year.
- Peter. C., rainham. essex., 13/02/2009 15:35
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Way to go Boris.
- albert hall, hove england, 13/02/2009 14:38
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Kingston to go up.
As normal.
Again!
- Anthony Jones, The Royal Borough of Kingston Upon Thames, 13/02/2009 12:42
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....SNP cuts taxes as Scotland continues to suck money out of England despite the recession...
- Mcw, London, 13/02/2009 12:38
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Dear Mark VOice of Reason - excellent idea - I think you should organise it.
The downside of us all blogging and venting our views is none of us wants to get off our backsides and do anything - hence the reason this country is is going down the toilet.
So the phrase should not be "someone organise it" but "I'll do it"
and before you ask - yes I do get off my behind and get involved in things I believe in,
- Jc, se1, 13/02/2009 12:26
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Mark Voice Of Reason, London uk
VERY WELL SAID
- P Staker, London, 13/02/2009 12:26
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Lower council tax = higher rents, they still get there money.
- Dave, London, 13/02/2009 12:20
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.....on the other hand you could vote SNP and have your council tax frozen for a second year.....
Sunshine all.
- Dave From Edinburgh, Edinburgh Scotland, 13/02/2009 11:27
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Good Lord, if my local authority starts charging less then how on earth will the councillors be able to give themselves the pay rise as they did last year?
- Bob, Cheam, 13/02/2009 10:59
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We need to reduce council tax.Make 20 % of council workersredundant now,and cut their obscene pensions which no one else gets.Someone start a campaign.Now.
Election now 1 million march on downing street.Come on someone organise it.
- Mark Voice Of Reason, London uk, 13/02/2009 10:43
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