11 March 2005
London local authorities have set average Band D council tax increases below the national 4% rise, although six councils are risking the wrath of government with increases at or above the 5% threshold.
A survey from the Association of London Government indicates an average Band D increase of around 3.8%, despite a 5.5% precept from the Greater London Authority.
Harrow has set the lowest increase in London at 0.7% or 1.6%, including the GLA precept. This compares with a rise of 4.1% in 2004/05. However, its Band D council tax still stands at £1,295. 'It will mean no cuts in services and an additional investment of £10m in the borough,' said Labour leader Navin Shah. 'For the Band D council tax payer it means an additional 15p per week.'
Croydon and Kingston councils have set the highest tax increases at 5.1%, taking them into capping territory.
The Office of the Deputy Prime Minister will set its capping criteria once final tax increases are reported on March 18, but traditionally it looks at the base rise of Band D tax bills. Kingston, for example, will have a Band D bill topping £1,375, compared with the London average of around £1,100.
Croydon's leader, Tony Newman, claimed: 'This year's modest council tax increase represents extremely good value for money and still keeps Croydon's tax level below the average for outer London.'
Lewisham, Bromley, Ealing, Haringey and Newham have all set Band D increases at 5%, following rises of 5.4%–7.3% last year.
PFmar2005
