Council agrees biggest tax cut in Britain for the second year running
by Hammersmith and Fulham Press Office
28/02/2008
Despite spiralling council tax bills across the country, one London council has bucked the national trend by agreeing the biggest council tax cut in Britain for the second year in a row.
The historic 3% cut was agreed at a budget council meeting on Wednesday, 27 February.
Hammersmith & Fulham Council Leader, Councillor Stephen Greenhalgh, said, “Too many families are being crippled by high bills. With high interest rates and the cost of living rising, we simply do not believe people can afford to pay any more.
“Since council tax was introduced in April 1993 the average bill in H&F has increased by 131 per cent . This has particularly impacted on residents with low to moderate fixed incomes who have struggled to meet these rise.
“Household budgets are being squeezed from all directions and it is up to us to respond by lowering our tax burden. We have to do things differently and that’s why we have just agreed the biggest council tax cut in Britain for the second year in a row.”
H&F Council has cut tax by waging war on waste, substantially reducing our debt burden, introducing competition to council servics and increasing productivity.
H&F Council’s second three per cent cut in a row means the council’s share of the bill will tumble by £26.68 from £889.45 to £862.77 when bills go through the letterbox in April. When other precepts from the Mayor of London are added the total percentage saving to Hammersmith & Fulham taxpayers is 1.74 per cent or £12.55.
Yet while reducing the tax burden, H&F is one of only a small number of authorities to receive the maximum of four stars for the quality of our services. Resident satisfaction also continues to grow.
Examples of efficiencies include:
- Cutting staff numbers by 200, including cutting policy advisor posts and centralising human resources.
- Reducing our historic debt by £17 million, saving council tax payers £1.5 million a year in debt interest payments
- Market testing £90 million of council services, expecting to yield £5 million in savings while improving service quality.
While cutting tax, the council is pumping in £1.5m as part of a £4m investment over two years in 24-hour policing in town centres. H&F has also allocated to spent£1.5m in parks.
Clean streets, recycling, tackling anti-social behaviour and promoting affordable home ownership remain top priorities, along with improving health and planning for £100m of investment in secondary schools under the council’s vision to make H&F a ‘borough of opportunity’.
“As a council we are focusing on delivering high quality public services and cutting red tape and inefficiency,” said Councillor Greenhalgh. “That’s why we have been given the highest rating of four stars by the Audit Commission for the quality of our services and that’s why resident satisfaction is up for the second year in a row.”
“Apart from cutting tax, this is a council with a real vision for what kind of borough we want,” said Councillor Greenhalgh. “We are investing in schools of choice with 21st century educational facilities, we are determined to increase the number of affordable homes across the borough and we want to regenerate and renew our most deprived areas by unlocking high land values.”
Following last year’s three per cent reduction, H&F Council’s value for money approval rating rose 16 per cent, according to the 2007 annual residents’ survey.
Councillor Greenhalgh concluded, “This shows once and for all that you can reduce the tax burden on residents while improving the way the council runs things.”
Read the full budget report (pdf 900KB).
2008/9 proposed efficiency savings include:
- £1.1million from streamlined human resources services and increased productivity
- £1.5 million from reduced debt repayments
- £539,000 from providing services on-line and other customer access improvements
- £468,000 from reduction in office space
- £625,000 from market-testing services
- £150,000 from reducing energy consumption
