Ministers Threaten Livingstone with Council Tax cap (Islington Liberal Democrats)

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

Ministers Threaten Livingstone with Council Tax cap

March 23, 2004 12:00 AM

Liberal Democrats have unearthed possible plans by the Labour government to cap London Mayor Ken Livingstone's 7.5% GLA precept increase this year. In a Liberal Democrat Opposition Day debate in Parliament last week, Local Government Minister Phil Hope MP revealed that a letter was sent warning Ken Livingstone that he could face capping because of his spending plans. Liberal Democrats on the Greater London Assembly proposed a budget that slashed the Mayor's proposed precept increase by half, yet provided for extra police officers and improved transport services. Compared with the Mayor's latest inflation-busting demand of an extra 33p per week from the average council taxpayer, the Lib Dem proposals for a 2.7% increase would have added just 11p a week to residents' bill. The Liberal Democrat GLA candidate for Islington, Terry Stacy, said: "Less than a month after Mr Livingstone was appointed as Blair's Mayor, the wheels are already coming off Labour's re- election bandwagon. "Labour ministers are desperate to bring the Mayor's reckless 'I spend now, you pay later' policies under control. His latest tax proposals, backed by the local Labour GLA member, will mean another big rise in our council tax. The Mayor's take has already doubled for Band D London council taxpayers during his term of office. "The Mayor's undisciplined budgeting and his excessive publicity stunts must become things of the past. Islington's residents deserve real value for money, at an affordable price, from the GLA." Extracts below are taken from Hansard - 10 February 2004 : Column 1347 Phil Hope: My right hon. Friend the Minister for Local Government, Regional Governance and Fire has now written to no fewer than 65 local authorities about which we have seen reports of council tax increases that are not in low single figures, and he is planning to call in some authorities. It appears inevitable that the Government will have use their capping powers this year. Will the hon. Gentleman confirm whether the letter has now gone to the Mayor of London? Phil Hope: I cannot confirm at the moment whether the letter has gone to the Mayor of London. There is a complicated debate between the Greater London Authority and the Mayor, but he will receive a letter if he is considering such an increase. Indeed, no sooner have I answered the question than I am holding in my hand the letter that has gone to the Mayor of London. Mr Hughes will later today table the following question: To ask the Office of the Deputy Prime Minister if he will place a copy of the letter to the Mayor of London regarding the capping of Council tax as referred to on the 10 Feb 2004 : Column 1347 in the library.