Wednesday 3 December 2008

Camden Council Tax 2009: time for a tax rebate for most vulnerable groups and proper economic regeneration strategy

Camden council is current going through is annual process of budget-setting. An early indication of the intention of the Conservatives and the Liberal Democrats, as indicated by the Executive in November, is for an ‘inflation’ increase of 2.5% in council tax.

This figure is the same as the target for the year before, meaning that council leaders have not taken any account of the downturn in their plans for the next year.

Meanwhile, other councils have looked more radically at the issue of council tax. Essex, for example, has come up with the idea of offering a rebate for certain groups. Under plans drawn up by the Conservative Authority, up to 30,000 vulnerable households will benefit from a £100 one-off rebate.

As opposition spokesperson on Finance, I think Camden Council should implement a rebate policy.

Why? The economic downturn is beginning to bite, and the council needs to do something to help people with their bills.

So far, Camden – unlike neighbouring Westminster – has not come out with a programme either to help small businesses through this period, or to help residents. As rebate for over-80s or vulnerable families would be a welcome step. It would be better than a reduction as it would be more targeted at those least-equipped to pay.

The cost of the Essex scheme is £3 million. In Camden this would be lower (we have a lower population), and this could be funded by a combination of savings and the diversion of the massive surpluses Camden has built up over the last 3 years.

2006/07 - £14 million underspend / surplus at end of year
2007/08 - £10 million underspend / surplus at end of year
2008/09 - £13 million underspend / surplus at end of year (projected)

Camden’s finances clearly have the balance to give a one-off rebate to households in the New Year – does the leadership have the courage to stand up to officers and deliver it?

Camden should undertake an immediate review of its advice and debt support arrangements. As it stands Camden Council is funding welfare advices services at a much lower rate than when times were good, thanks to the massive budget cuts to advice services in 2006 and 2007.

This is a ludicrous policy. Camden should immediately boost its funding for debt and advice services – restoring funding to 2005 levels at least.

Camden should also reverse unpopular decisions it has made on fees and charges, such as hiking fees 267% for parking permissions for traders and increased charges for market stall holders, just as Labour has proposed.