Lib Dems Hold Down Lambeth's Council Tax Increase

8.19.30am GMT Sat 12th Mar 2005

The Liberal Democrat-led administration on Lambeth Council has voted to increase the borough's Council Tax by just 3.99%. It is increasing spending on front-line services while managing to hold down the tax increase overall ,and continuing to improve the Council's financial health following the years of Labour neglect.

The low-level increase was only possible due to hard work in tackling Lambeth Labour's historic legacy of financial mismanagement; hard work recognised by the independent District Auditor in his letter of the 12th January 2005 in which he said:

"The Council's financial health is also stronger than it has been for many years".

The 2005/06 budget package increases spending on schools, children and vulnerable adults by £23.4 million, with a further £8.4 million being put into parks, street lighting, road repairs and making the parking service fairer and more responsive.   

This is in spite of real-term cuts in the funding from the government, which for the third year in a row has increased Lambeth's grant by less than inflation after money has been given to schools.  It is also in spite of the Council having to increase its pension funding by £5 million a year to make up for the 'holiday' Labour took from making proper pension provision in the mid-1980s and early 1990s.    

The joint administration has been able to increase funding for front line services, while holding down the Council Tax increase, because it has found a further £17 million of savings and efficiencies on top of those found in the last two years. 

The overall increase in Lambeth residents' Council Tax bills won't be known until the Mayor of London, Ken Livingstone, sets his precept.  His current proposal is for a 5.5% increase in his share of Lambeth Council Tax bills. 

"The joint administration is delivering better value for money for Lambeth residents," says Councillor Peter Truesdale, Leader of Lambeth Council. "We've held the Council Tax increase down to 3.99%, while increasing spending on front-line services - schools, children, vulnerable adults, parks, street lighting and road repairs - by £31.8 million."

"If we weren't still dealing with the financial mess Lambeth Labour party left behind there'd be even more money to invest in services," he added. "Instead, it's costing each local ratepayer £50 a year to pay for Labour's pension fund mistakes alone.  If that wasn't enough, the Labour government has made real-term cuts to the funding it gives the borough for the third year in a row!"

Facts about the Council Tax

*The London average is around £1,180 for band D, with Lambeth now some £84 below that average.

*Lambeth is likely to retain its position as the 7th lowest Council Tax in London.

*Since the Mayor of London was elected he has more than doubled his precept to Lambeth Council Taxpayers, from £11m to £25m.

Liberal Democrats Tackling Labour's Bitter Legacies

• A further £5million is being put into the Pensions Fund next year to help make up the shortfall

• By again collecting our debts more promptly we are able to save £800,000 next year

*At the end of March 2005 our proper financial management has turned Labour's £28m General Fund deficit into reserves of £25m - regarded by the District Auditor as being 'as low as is prudent'.