Merlene and Hammersmith & Fulham Lib Dems warn of future Council tax hike

10.30.00am GMT Thu 25th Feb 2010

The latest budget plans adopted by the Tory controlled H&F Council at a Budget meeting on 24 Feb confirmed a final year of cuts in Council taxes. Local Liberal Democrats have warned of future sharp increases in Council Tax, as the Council has financed this year's 3% cut not out of revenue but by drawing down £2.8 million from reserves.

Other key points noted by the Lib Dems include:

- Cuts in services totalling £13 million including £2.165 million in Children's Services and £3.6 million in Community Services such as Adult Social Care

- Budget risks of £10 million (going up to £25 million in 2013), recognising that some of the so-called efficiency savings may not be achieved as well as the likelihood that the grant from central Government may be reduced in the coming three years

- A large scale capital disposal programme, in excess of £10 million over the next 2 years of Council assets (though the report is short on detail as to which specific properties are at stake)

- 25% of future receipts from decent neighbourhoods programme (including planned sales of £7.435 million of properties such as hostels, street properties and other regeneration sites) is intended to be siphoned off for general capital investment or to subsidise the revenue budget rather than reinvested in creating sustainable communities; and

- A pension black hole of over £300 million which has not been addressed by the budget at all.

"The stark truth is that the Council is pursuing a reckless policy of Council tax reduction financed out of reserves and through sale of Council assets. Public services on the other hand are cut despite greater demands on its services and euphemisms such as "efficiency savings" and "self-directed support" are used as a way of disguising real cuts in Adult Social Services and other services" said Merlene Emerson, Parliamentary Spokeswoman for Hammersmith.

Merlene continued: "In the current economic downturn, what we need from our local Council is vision and leadership, safeguarding local jobs rather than creating no less than 600 unemployed to join the dole queues. We badly need investment in services for young people and greater security and care for the elderly and vulnerable. Instead we have a Council intent on the banner headline of 3% Council tax cuts which is nothing short of a pre-election bribe."