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Council tax remains politically toxic. Ministers threaten to cap councils that fail to keep local tax increases down, so authorities now do what they are told.
London looks set to have the lowest average council tax rise for the second year running, despite getting a lower-than-average increase in Whitehall funding.
Mayor Boris Johnson has contributed to the downward pressure on council tax by freezing the Greater London Authority's demands.
Tory boroughs such as Hammersmith and Fulham, Wandsworth and Westminster all look to appeal to voters with low council tax. Having said this, a number of Labour boroughs are also opting for council tax freezes in April.
As the national economy slumps into deep recession, councils are holding down tax demands to help householders. But as many boroughs will receive central grants that will rise by less than two per cent next year and in 2010-11, there will have to be efficiency savings and/or service cuts.
Schools receive ring-fenced grants from Whitehall, so they are protected. But funding for highways, voluntary bodies and even social services may be cut.
The current average council tax per dwelling in London is £1,199. This April's rise will add perhaps £20 to that figure.
Given the escalating tax increases we will all face from the Chancellor in the years ahead, this is surely a mercy.
● Tony Travers is chair of the Greater London Group at the LSE.
