Parties play blame game over 5% hike

In a cost of living crisis families face a maximum possible council tax rise

Friday, 8th March 2024 — By Tom Foot

adam hug

FAMILIES struggling in the cost of living crisis are facing another bill going up after politicians voted to raise council tax by the maximum possible, and that’s on top of the massive rent rise kicking in next month.

Labour-run Westminster City Council approved the 5 per cent council tax hike at a budget meeting on Wednesday night. They say they have been left with no choice by a government that refuses properly to fund local authorities.

But the Tories are saying Labour is spending too much on “pet projects” and its budget plan is unsustainable.

Labour’s cabinet member for finance and council reform David Boothroyd said he would direct funding “to those who need it most” and that the increase was necessary because of “rising pressures and limited support from the government”.

The Conservatives, in opposition for almost two years, criticised the move, arguing that Labour, which seized control of Westminster City Hall in 2022, was “over-committed on too many projects”.

And they criticised the city council for blowing £12million from its res-erves since taking power to “fill gaps across their programme”.

“The Conservative administration is concerned this level of borrowing is unsustainable,” the group said yesterday, Thursday. The Conservative group suggested an amendment that it said would mean council tax could be frozen.

Tory group leader Paul Swaddle said the hike was “a worrying sign of things to come”, and added: “We have real concerns Westminster’s residents are now being burdened with footing the cost of Labour’s ‘pet projects’ across the city. The Westminster Conservative group would have frozen council tax by pulling back unnecessary spending.”

The Tories also said introduction of a community grants programme was costing more money than it’s worth, along with citizens assemblies launched in the wake of the climate change protests.

Privately some are suggesting Labour’s cabinet is not up to the task and that officers are not being properly challenged.

Labour says it is committed to maintaining its £1million cost of living support fund and a £1million council rent support fund. It voted to increase council rents by 7.7 per cent, an unprecedented increase in the last 20 years that comes on top of a 7 per cent rent increase the year before.

Westminster says that it will continue to spend £450,000 to “tackle the ecological emergency”. It said it was also committed to raising the hourly rate of care workers’ pay by £1.50, in a package costing £1.2million.

The city council has had to find £20million in savings because of government cuts. It has published a list of where it hopes to make “efficiencies”. Much of the list are vague claims about “contract efficiencies” in, for example, lighting, drainage and adult social care contracts.

By far the biggest “saving” the council is proposing is the revenue being brought in by the move to charge electric car owners for parking.

The council lists “parking environment charging strategy” as a £2.9million saving for 2024/25.

The Labour group said the council tax would remain one of the very lowest in the country and that households in need can still apply for the council tax support scheme.

Leader’s city council leader Adam Hug (pictured), who was busy defending the tax hike on the radio yesterday, said: “Westminster remains a city of two halves, as the home of the nation’s most affluent areas, and some of the most deprived. This year we will narrow in on the addressing the climate emergency and providing direct support to residents facing hardship. Now more than ever, as we continue to face high costs, we are determined to reduce inequalities in Westminster.”

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