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Council tax to be frozen in London as Labour faces wipeout
Paul Waugh, Deputy Political Editor02.10.09
Millions of Londoners will get a council tax freeze next year after Labour unveiled a last-ditch move to avoid wipeout in the capital.
The Standard can reveal that all eight Labour-run town halls across the city will not raise the tax.
As Gordon Brown scrambles to avoid a general election defeat, Cabinet colleagues hope that the move will persuade voters the party can cut costs without hitting key services.
With Labour still struggling in the polls, the Prime Minister sees a tax freeze in London as a key example of the party helping people get through the recession.
Lambeth, Lewisham, Tower Hamlets, Hackney, Newham, Greenwich, Haringey, and Barking and Dagenham will all see an absolute freeze for 2010-11.
Labour's move will put pressure on the Tories to follow suit, prompting the prospect of London becoming the only city in Britain to see no increase for most of its residents.
The capital has suffered huge rises in the tax over the years and areas such as Kingston-upon-Thames have regularly set the highest in the country.
But London is now at the cutting edge of moves towards either no increases or, in some cases, cuts.
Conservative-run Hammersmith and Fulham last year
slashed council tax by three per cent for the third year running.
David Cameron has also announced that a Tory government would help all boroughs freeze the tax for two years.
Council tax levels are traditionally set in February before bills go out in April.
A Tory spokesman said it was difficult to predict what the party's councils would decide until they had their local Government settlement.
Labour fears being swamped by a “blue tide” at the general and local elections next spring.
A poll last week showed it was on course to lose 17 MPs while the Tories would have more MPs for the first time in a generation.
With Boris Johnson installed in City Hall — in part thanks to his own freeze on the council tax “precept” for police, fire and other services — the Conservatives believe the capital has shown the political payback from finding savings for taxpayers.
But ministers say all boroughs have already been given a three-year aboveinflation funding increase that covers 2010-11.
The CPI measure of inflation was 1.6 per cent in August, while the RPIX measure was -1.3 per cent.
Communities Secretary John Denham is driving through the new Labour strategy, said: “When times are tough, people want to know that their council is going to protect their services and save them money.
Freezing council tax will help those families on middle and modest incomes who need help most.”
Mr Denham said Labour councils were smarter than the Tories at finding efficiencies without hitting front-line services.
Average council tax bills across Britain rose by 3.5 per cent last year, but only by 1.6 per cent in London.
How the move would effect you
COUNCIL TAX - BILLS FOR 2010/11
INNER LONDON
Camden (Con-LD) ZERO expected
Greenwich (Lab) ZERO
Hackney ZERO
Hammersmith (Con) -3.0%
Islington (LD) Unclear
Kensington and Chelsea (Con) Residents get £50 rebate which equates as net cut for most
Lambeth (Lab) ZERO
Lewisham (Lab) ZERO
Southwark (LD-Con) Unclear
Tower Hamlets ZERO
Wandsworth (Con) ZERO expected
Westminster (Con) ZERO expected
OUTER LONDON
Barking (Lab) ZERO
Barnet (Con) Unclear. 2.8% this year
Bexley (Con) Unclear. 2.3% this year
Brent (LD-Con) Unclear.
Bromley (Con) Unclear. 2.7% this year.
Croydon (Con) Unclear
Ealing(Con) Unclear
Enfield (Con) Unclear. 2.7% this year.
Haringey (Lab) ZERO
Harrow (Con) Unclear. 2.9% this year
Havering (Con) Unclear 1.9% this year
Hillingdon (Con) ZERO expected
Hounslow (Con) ZERO expected
Kingston upon Thames (LD) Unclear. 3.2% this year.
Merton (Con) Unclear. 2.9% this year
Newham (Lab) ZERO
Redbridge (Con) Unclear. 2.7% this year.
Richmond upon Thames (LD) Unclear. 4.3% this year
Sutton (LD) Unclear. 2.9% this year
Waltham Forest (Lab-LD) Unclear. 1.95% this year
Reader views (27)
In Kingston, it looks like we won't be getting a zero increase in council tax as, apparently, the council have had to use a £5million reserve to fill a hole in their finances AND they are likely to still end up £700k in the red. I think it will be good-bye to the Lib Dems in Kingston.
- Mark, Kingston
No doubt the figures will be fiddled so that the Labour boroughs get a bigger grant from the Labour Government
- John, Bromley
Reuben Camara, (Morecambe Compound, EUSSR???) I'll be voting Labour (again), Gordon Brown has proved himself as a capable PM through one of worst economic crises the world has seen. I am certain that it could have been a lot worse without his strong leadership and Labour are the only realistic choice to form the next Government, I wouldn’t trust David Cameron or the Tories for a moment, nothing they say is of any substance and they constantly seem on the back foot. Oh and also note how I turn my caps lock off to type in lower case and therefore not appear weird and/or hysterical.
- Nj, London
Its stretches credibility and our credulity to swallow labour comments that they are smarter in reducing costs and delivering efficiency - its so ridiculous I laughed out loud when i read it - with the level of self delusion in Labour ranks stepping up on a daily basis what next - Gordon is the prudent chancellor, Labour are the Party of the environment, referendums for constitutional change................oh hang on a minute................hahahahahaha dear oh dear..........
- Christian Ball, London, UK
C Elder - your points in full:
1.No more hiring at any level of govt - except that this would eventually would mean no one to run to country and anarchy.
2.All temps/contractors out - so all the buildings fall to pieces and children in need continue to be abused.
3.All outside consultants out - fair enough.
4.Public sector employee retirement age moved to 65 - er...it already is.
5.All new Public sector employees will have to contribute to their retirement - er...I pay 7.2% of my salary to my pension.
6.No salary increases or bonuses for public sector employees until the budget is balanced - this year we're getting around 1.2% less than inflation so in effect a pay cut.
7.Elimination of 50% of the Govt. funded quangoes - name three?
8.Reduction of 30% in the number of MP's - less MPs mean even less chance to tell yours what to do.
9.No benefit payments without community service work in return - what about the people who like me pay hundreds in National Insurance, if I get made redundant due to cuts, do I have to clena graffitti for my 3 to 6 months of benefits or shold I be looking for a proper job?
10.No inheritance tax on the value of people's homes in their estate - and how do we make up the shortfall?
11.No tax on savings - there is no tax on savings, you pay tax on the interest you earn
12.Reduction in the subsidies paid out to Scotland - why? They're part of Britain too.
- Liberal And Proud, London, UK
Freezing the tax in April, election likely in May. That gives voters one month to bask in the possible £10 or £20 saving. Not exactly the greatest giveaway on earth is it?
If this is what passes for economics at No. 10, no wonder we are up a certain creek without a certain implement.
- Nobby Clark, Perth, the Scottish one
Funny how Scotland can freeze their council tax for 2 going on 3 years. It seems to me that whilst raising taxes to pay for our local needs there is always someone getting a far much better deal?
- Bob Edgeworth, BROMLEY, KENT BR2 9PQ
Pauline, no point in helping anyone this year sweetheart, he didn't have to call an election this year and of course we will all have forgotten about it next year because we are dummies............
- Andy Woodhead, London, ENGLAND
I couldn't agree with Bob of Cheam more. The London Borough of Sutton have a history of wasting money on ill thought-through, hair-brained schemes.Hopefully, the two current LibDem MP's will be wiped out in the forthcoming general election and with any luck the council in the next local elections.How the LibDems with their increasingly daft ideas ever get anyone to vote for them amazes me!
- Lucy, Wallington
Socialism at it's best.
Labour buying themselves out the mire they themselves created with other peoples money.
- Frank, Home Counties, England.
Its a bit late now, why didn't he help us out this year....
- Pauline, North London
Call me naive, but wouldnt it be refreshing if the major politial parties actually tried to get elected on the basis of something they believed in, rather than desparately clamouring to get into power by any means and then wondering what the hell to do with it.
- John Entwistle, Hertford, England
I notice that for the second year of the recession running Sutton council have increased above and beyond the rate of inflation. I guess that virtual reality centre won't pay for itself, much like the abandoned tax on green waste clipping that lasted a full 6 months before being abandoned and costing residents copious amounts of their tax money. If anyone wonders what a liberal goverment would be like I'd point them at the huge amount of money my local authority have wasted in the last 20 years.
- Bob, Cheam
I just wonder if we need so many borough councils in London. There is so much duplication with empires built on structures that were developed decades ago. There would be no loss of service if for example Islington and Hackney merged to form one larger borough. Just think of the cost savings as all those highly paid senior officers and council offices were swept away!
- Simon Ellis, London E8
Lambeth Council (Labour) froze council tax this year. Except they put rents up by 17%. Anyone working hard and paying their own rent is subsidizing this "freeze" in council tax.
Typical Labour underhand tactics.
Their previous incompetence left a £9m hole in the housing budget.
I'm afraid that Mr. Camara has it right.
- Sarahn, London, UK
Freezing is not enough to get us out of this mess.
There has to be a large reduction in the amounts spent by our councils.The conservative platform should be-
1.No more hiring at any level of govt.
2.All temps/contractors out.
3.All outside consultants out.
4.Public sector employee retirement age moved to 65.
5.All new Public sector employees will have to contribute to their retirement.
6.No salary increases or bonuses for public sector employees until the budget is balanced.
7.Elimination of 50% of the Govt. funded quangoes.
8.Reduction of 30% in the number of MP's (we currently have as many MP's for our 65 million population as the USA has congressmen for their 320 million pop.)
9.No benefit payments without community service work in return.There is lots of grafitti to be eliminated;rubbish to be picked up;really handicapped people to be helped;oap's who need assistance etc.
10.No inheritance tax on the value of people's homes in their estate.
11.No tax on savings.
12.Reduction in the subsidies paid out to Scotland(currently £2,000 per person in england sent north of the border).
And so on.
- C.Elder, london
The SNP government in Scotland has enabled all local authorities to freeze the council tax for the last two financial years and say it will do so again for 2010/11. The Conservatives in the Scottish parliament support this very welcome move but what is wanted is a completely new and fairer system of local taxation to replace the very unfair council tax.
- Jkr, Glasgow Scotland
Anybody who votes Tories obviously have memories like
Goldfish and shouldn't be allowed out of their bowls and be investigated by the appropriate authorities
There Reuben i have fixed your statement for you.....
Oh if only the grass was greener eh... how soon people will be moaning when they really have it bad under the Tories, i'm not a great lover of this Labour govt but things will be dire under the other lot but never mind you lemmings just carry on
- Steve, london
Still not value for money.
- Philip, London, England
No sensible council is going to declare a freeze this early in the budget-setting process. They don't know what inflation will be (even the Bank of England doesn't!) or what will happen to London's Freedom Pass subsidy - to name two major factors.
Oh, silly me, talking about sensible councils - these are Labour councils.
(@ Mario Kempe - sadly, council's can't freeze business rates - those are set by central government).
- Neil, S.E. London
If all else fails, then try bribing the voters!
- Simon, E14
'As Gordon Brown scrambles to avoid a general election defeat, Cabinet colleagues hope that the move will persuade voters the party can cut costs without hitting key services'. If they can do it now, it just shows how much taxpayers money they have wasted in previous years!
- Alan, carlisle uk
Hackney has frozen its part of the council tax for the last 2/3 years, the rise two years ago was purely down to Ken Livingstone, this year we had an absolute freeze.
- Jim, London
They obviously think we are all chumps that can be fooled by their pathetic antics.
- Frederick, London
But don't forget that businessrates increased in April by 5.8% and are set to increase next April by 10/15%.
Why don't they freeze the business rates?
- Mario Kempe, london
Too little, too late.
Gormless Brown is really scraping the bottom of the barrel now, isn't he?
ANYBODY WHO VOTES LABOUR EVER AGAIN NEEDS TO BE INVESTIGATED BY THE APPROPRIATE AUTHORITIES.
- Reuben Camara, Morecambe Compound, EUSSR
It's rather like watching a terrier with a cornered rat.
- Threaded, Roskilde, Denmark
