Lib Dems Propose Real-Terms Cut In Council Tax

8.51.00pm GMT Sun 10th Feb 2008

• THE Liberal Democrats have announced a below-inflation (RPI)* Council Tax rise of 3.57 % for 2008/2009 in their second budget since winning control of Richmond Council in 2006.

This year's rise will mean that Council Tax will have risen only in line with inflation (RPI) over the first two years of the Lib Dem administration, compared with a 23.3% rise over the first two years of the last Conservative administration. The budget proposals, which will be decided by Council on 4th March include:

• £1.1 million extra for recycling and waste disposal;

• £900,000 extra for care services for older people and those with learning difficulties; and

• £400,000 extra for looked after children and pupils with special educational needs.

Alongside these revenue budget plans, the Lib Dems have also proposed the biggest ever capital investment budget for the next year, with £51 million for schools and other vital infrastructure improvements. This budget is partly funded from use of surplus reserves, partly from government grants and partly from increased borrowing. Over the last 12 months, around £10 million of surplus reserves have been invested in capital schemes to improve services. Councillor Stephen Knight, Deputy Leader and Cabinet Member for Resources said:

"The burden of Council Tax weighs heaviest on the least well off; since its introduction by the Conservative government in 1993 Liberal Democrats have fought for its replacement by something fairer. For now our hand is forced; but we are determined to keep tax rises as low as possible. This year's rate equates to a real-terms cut - an increase below inflation and below the rise in the state pension. This is in stark contrast with the infamous 15.6% rise imposed by the previous Conservative administration in their first year. In our budget we have found money to meet the needs of the most vulnerable in our community and fulfil our manifesto commitments around investment in key services such as schools and recycling."

• Latest inflation (RPI) figure - for the 12 month period to January 2008 - was 4.1 %.