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A London borough aiming to rebrand itself as a “John Lewis” council and offer tax rebates to residents was today described as closer to discredited jewellers Ratners.
The Labour leadership of Lambeth council wants to encourage residents to help provide its services to save money for the cash-strapped borough.
It believes this will preserve vital services in the face of big funding cuts after the election and is a better option than the two-tier “easyCouncil” system, in which residents pay extra for a faster or more complete service, being promoted by Tory-run Barnet council.
Lambeth's plans were ridiculed by the Liberal Democrat opposition.
Group leader Ashley Lumsden said: “John Lewis's slogan is never knowingly undersold' but they have never upped home care charges to be the highest in London.
“That would suggest the council is not operating as a mutual but is profiteering from its residents. It is more like Ratners — always trying to sell themselves when in fact the services are rubbish.”
The Labour leadership wants to promote the idea of a “co-operative council” in which residents help with tasks normally done by the local authority, from clearing derelict sites to running community sports and leisure facilities.
Labour leader Steve Reed said this was already happening in several places, highlighting the imminent takeover of the former Lilian Baylis school by a community trust, and the rapid expansion of a food-growing collective.
The council is facing a £21.7 million overspend on its current budget and has frozen its share of the council tax bill for the second year running from April, despite a warning from its finance chief that this will “materially increase” its money problems.
From next year it expects its government grant to be slashed by 20 per cent.
But Mr Reed said the council had saved around £30 million, 15 per cent of its discretionary spending, in the last three years and hoped the co-operative plan could make similar savings.
A commission is being set up to work out how to offer council tax refunds to residents who sign up for the scheme.
Mr Reed said: “You have a choice. You can stop providing services. You can charge for them. You can ration them. What we want to do is try to protect the services and provide them differently with the community, so that will save us money.
“The other element of this is how we can give the community direct control over services. That is why we set up neighbourhood mutuals. When we are offering groups the opportunity to run local services they are seizing it with both hands.”
Reader views (1)
Before I even read the full article I knew it would be either Lambeth or Haringey, the councillor is right more like Ratners.
- Daisy Willets, London SW1P, 18/02/2010 12:55
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