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London borough puts freeze on council tax
Householders aged 65 or more living in the London Borough of Hillingdon will have their council tax frozen for the next three years, writes Paul Lewis
The Conservative council, which won control of the borough in May 2006, believes it is the first in Britain to freeze council tax for older residents. About 13,000 households whose income or savings are too high to get council tax benefit will be included in the scheme.
The change means the council tax charged by Hillingdon in 2008/09, 2009/10, and 20010/11 will be the same as it is this year, an average of £1350. However, Hillingdon has no control over the tax levied by the Greater London Authority which will almost certainly rise each year. This year the GLA tax, including £20 towards the London Olympics, is £380 for the average Hillingdon property, up 5.3% on 2006/07.
The freeze promised from next year follows the decision by Hillingdon to give older residents a 2% discount off their council tax this year. That knocked £27 off the average bill. Next year the freeze could double that saving. And it will give all householders aged 65 or more the peace of mind that for the next three years the biggest element of their council tax bill will not rise.
This year’s 2% discount will cost Hillingdon £400,000 (out of a budget of £250 million). Freezing the tax next year will probably cost the same again. The money will come out of savings of £15 million a year from what it calls its ‘improvement programme’ – cutting costs on the amount spent to run the borough. It has similar targets over the next two years.
Political opponents claim that other residents will pay for extra help to the over 65s. Mike Cox leader of the Liberal Democrats told the local paper that it was “welcome for the poorest pensioners” but called it “a political stunt which will hurt many residents faced with rising mortgage rates and those on lower incomes who can ill afford it.”
However, it is unlikely any candidate will dare suggest ending the scheme when the council is up for election in 2010, just as the last year of the freeze begins.
Hillingdon’s move appears to have received no national news coverage at all. But once the word spreads other councils around the country will surely come under pressure to do the same.
This article was created: 30 May 2007.
This article was last edited: 31 May 2007.
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