As fears of soaring council tax bills continue, residents of Hammersmith & Fulham are set to see their council tax bills reduced for the first time in over a decade as the council proposes a 3% cut in tax. The reduction is widely expected to be the biggest drop in London – maybe the whole country.

The Conservative Council took control of Hammersmith & Fulham at the same time Conservative administrations were elected in Ealing and Hounslow boroughs however, both Ealing and Hounslow councils are playing their cards close to their chest when it comes to the presenting the first council tax demands of their term of office. 

Although it could be possible that Hounslow are trying to soften the blow of a steep rise.  Speaking about the Provisional Local Government Settlement, which provides three-quarters of local government funding compared to 25% raised in Council Tax, at the end of last year, Cllr Peter Thompson stated “The settlement to Hounslow is minimal 13 only 2.7% compared to a maximum of 3.8%. The real losers of this settlement are our residents. Cutting back services or increasing council taxes is not much of an option.  We have regularly and consistently voiced concerns about the inadequate way population figures are measured in Hounslow. The current system fails to take account of our rapidly growing population and its changing needs. Consequently, we are not receiving the funding we require to carry out basic services."

Homeowners faced another newer threat of receiving higher council tax bills every time they improve their house under a Government proposal announced this week which would see all properties revalued once a year.  The plans were met with a hostile reception with critics claiming that the plans are a stealth tax designed to exploit soaring house prices, and that revaluing all 21million homes in England every year could cost as much as £5billion.  Council tax is currently charged according to a band system based on the value of properties in 1990 and a house's value is only re-assessed when it changes hands.

Local government spokesman Caroline Spelman told a London newspaper "There is now irrefutable evidence that the Government is preparing to introduce a new home improvement tax, on top of stamp duty, and a new levy on house prices in every part of the UK."

Although it is Londoners that have seen their bills increase more quickly than any other tax since 1997. Across the 32 London boroughs and the City of London the average local tax has increased by 86% since 1996-97. Leader of Hammersmith & Fulham Councillor Greenhalgh believes tax cuts are possible without affecting front line services. 

Matthew Elliott, Chief Executive of the Taxpayers’ Alliance says, “It’s good news for taxpayers in Hammersmith & Fulham that the council is leading the way with a good cut that will start giving pensioners and hardworking families more to spend on their own priorities. We hope this starts a trend across London.”

Ealing Council will announce their council tax on March 6th 2007.  Hounslow Council are yet to respond to our request for information.

 

January 16, 2007