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Residents could be faced with an inflation busting rise in their council tax bills after local authorities were awarded the minimum increase of just 2.7% from Local Government Minister Phil Woolas.

The Provisional Local Government Settlement (announced yesterday, 28th November) provides three-quarters of local government funding compared to 25% raised in Council Tax.

Speaking out at Tuesday night’s Borough Council meeting, leader of Hounslow Council, Cllr Peter Thompson said “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.

“The Government is not accepting our arguments over population figures and this year we are not allowed to lobby the government in person but we will make a written submission about the inadequate measurement process. Local residents are being asked to pay for national challenges and initiatives. ."

The outlook is no better for residents in Ealing whose local authority was also amongst the 20 London boroughs awarded the minimum level of funding is known as the ‘floor’.

Council leaders now face the tough choice of cutting services or raising council taxes.  Minister Phil Woolas has indicated that the average council tax increase is expected to be less than 5% and has threatened to cap councils would do not adhere to this figure.

November 30, 2006