‘How can I afford council tax now?’ The 94% hike causing shock and anger
Three London councils are preparing to challenge ministers over funding shortfalls that they say will need to be filled with higher local taxes
Paul Fisher, Westminster's Cabinet Member for Finance, has denied that the council's warning of a possible 75 to 100 per cent council tax rise is a political move, describing the joint challenge being mounted by Westminster, Wandsworth and Kensington and Chelsea councils as a "very genuine attempt to push the Government to rethink the funding," The i Paper has reported. The three Conservative-led councils, alongside Hammersmith and Fulham, the City of London and Windsor and Maidenhead, have been given special permission to raise council tax beyond the usual 5 per cent cap, after the Government's "fair funding" review changed the formula deciding how much money each council receives.
According to House of Commons Library analysis of Government figures, Westminster is assumed to need a 70.9 per cent council tax revenue increase over three years to deal with the funding shortfall, second only to Wandsworth's 75.5 per cent. Westminster faces a £100 million funding cut by 2029-30. The council, together with Wandsworth and Kensington and Chelsea, plans to submit a formal petition to the Government in the coming weeks under the Sustainable Communities Act, which allows councils to appeal against a policy they believe could damage residents' wellbeing.
Some commentators have expressed scepticism about whether the councils will follow through on such large rises. Andy Pike, professor of regional development studies at Newcastle University, called the threats "sabre-rattling," suggesting the councils are "trying to blame the Government for the funding settlement" as a negotiating tactic. John O'Connell, chief executive of the TaxPayers' Alliance, said the rises being discussed were "simply unacceptable" and would do "real damage" to residents' lives, while also calling on the Government to rethink the funding reforms.
You can read Adam Forrest's and Matthew Bailey's article in The i Paper via their website.
