CAPPING OR SCRAPPING, THE CHOICE IS NOW THE MAYOR'S

4.49.08pm GMT Thu 2nd Dec 2004

Commenting on the Local Government Settlement that sees headline figures of a 5.8% increase for policing grants and 3.5% for emergency fire and planning, Liberal Democrat Budget Spokesperson, Sally Hamwee, said: -

"The overly bureaucratic, overly complex tome of figures, percentages and gobbledegook in the Local Government Settlement tells Londoners very little at the moment about how much they will pay in Council Tax in the coming year. Despite any announcements the Mayor might make trumpeting success for London, the devil will remain in the detail for some time to come.

"However, what appears so far is that London's policing budget looks set to be £15m better off than forecast, but still leaves a gap of around £83million to fill at this stage.

"So soon after the Mayor has threatened a 60% increase in the congestion charge, the possibility of a large hike in Council Tax still looms if he wants to go ahead with increasing police numbers.

"The Chancellor has failed to come forward with the cash for Mayor Livingstone's ambitious spending. At this stage it appears the choices are stark. Either the police's Step Change faces being scaled back, Council Taxpayers will face a leap in their bills, or Ken Livingstone will face the humiliation of being capped by his own party."

ENDS