Labour vote for Ken's 29% London tax hike (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

Labour vote for Ken's 29% London tax hike

February 27, 2003 12:00 AM

Shame-faced Labour London Council Leaders meeting this week at the Association of London Government's Leaders Committee gave Ken Livingstone the green light to impose a whopping 29% increase in the London-wide "precept" which is added to local Council Tax bills. Liberal Democrat London Council Leaders, led by Islington's leader Councillor Steve Hitchins, had proposed that London Councils join the GLA Lib Dems and fight the massive tax hike proposed by the Mayor, instead limiting any increase to no more than 17.5%. This would have guaranteed spending for the additional police officers Ken's proposed. Labour instead voted down this motion, claiming that a 29% increase was "as low as possible". The news of the huge hike in the GLA precept follows recommendations from the Labour Government to Islington Council about council spending which would have meant a rise of 31% in Islington's part of the council tax. Fortunately the Lib Dems have refused to act on this and are instead keeping their pledge to keep Council tax below the London average. Their proposed council tax rise of around 19% will mean that Islington residents will pay at least £100 less than their neighbours in Hackney, Haringey and Camden on current projections. Since 1998 Islington's council tax will have risen at exactly the rate of inflation whereas nationally, bills would have averagely increased by 42%. On top of this, Islington residents can expect £9.8 million extra cash to continue to improve education, £44 million for housing, with £6.6 million to enhance security and £3.3 million extra money for social services. Councillor Steve Hitchins said: "The Labour Party has clearly done a grubby deal behind the scenes with Ken Livingstone to let him impose this giant Council Tax rise on Londoners. "First the Labour Government want a 31% rise in the Islington council tax and now London Labour wants you to pay even more. It's clear from this that Labour means higher taxes - remember only three years ago under Labour Islington had the highest council tax in London. "As Lib Dems we deliver what we promise. We pledged lower taxes, promising to keep our council tax below the London average and we've stuck to this. Yet we're still putting more money in to improving services at a time when the government is cutting grants to London."