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.

Recap of 2006/2007 Budget cuts in Camden

The councillors approved £23 million in budget cuts in 2007-8, with over £40 million in the next three years, affecting the following:

- 350 jobs slashed
- £3m cuts to children's services, including play scheme closures plus support to vulnerable children reduced
- £9.8m cuts to Housing and Adult Social care with 170 job losses
- 20% hike in community meals charges
- Cuts in Welfare Rights and Camden Language Services
- Cuts in funding to the voluntary sector
- Inflation-busting 5.3% rent rise for council tenants
- Major upheavals in hostels with 60 jobs to go in homelessness services
- end to door-to-door recycling schemes on council estates
- Enforcement initiatives in the planning department deleted.
- Slash street ‘gully cleansing’ team
- 3am street cleaning in entertainment hotspots such as Camden Town and Covent Garden cut.
- Reduction of posts in Youth Offending Team.
- Schools music service under review.
- Grants to voluntary services reduced by 12% in real terms over 3 years.
- Boulevard project scaled down.

The administration combined this with above inflation hikes in fees and charges:

- Meals on Wheels dinners for the elderly to rise by 50p each (or nearly £300 a year for a couple)
- Surviving play after school and holiday play schemes to be more expensive.
- Cemetery charges up.
- More expensive fees for pest control.
- Higher fees for hiring out the Camden Centre and other council buildings.

See press reports from the demonstration here:
http://libcom.org/news/town-hall-riot-over-cuts-camden-01032007

http://www.thecnj.com/camden/022207/news022207_01.html

Polly Toynbee: http://www.guardian.co.uk/comment/story/0,,2037972,00.html

Vital advice services cut in Camden

In the 2006-07 budget passed in May 2007 out went Camden's nationally-respected Welfare Rights Unit, now broken up with key staff leaving and others split up across the council.

Since 2002 the Unit worked with other parts of the council and with local advice agencies, like the CABx, on income maximisation campaigns. These netted over £10 million in 4 years for local people in Working (Families) Tax Credit and extra money for carers and older people. Special projects took place in Highgate New Town and Kilburn which contacted hundreds of parents and pensioners, bringing them extra state money to help with bills or childcare.

Advice services (CABx, Camden Law Centre and others) long seen by the Tories as the bastion of urban trendy lefties and local trots, were the target in January 2007 just as it is now by the right-wing Tory administration in Hammersmith and Fulham, see here. yet the perform a vital function, giving needed advice to people who have no one to turn to.