PROPOSED 7% BUDGET INCREASE BY MAYOR PUSHES TAX HIKES TO THE LIMIT AGAIN

1.12.11pm GMT Wed 15th Dec 2004

Commenting on the publication of the draft budget proposals by Mayor Ken Livingstone that show a proposed increase of 7% in the London Assembly share of Council Tax (Tuesday 14th December 2004), London Assembly Liberal Democrat Budget Spokesperson, Sally Hamwee, said:-

"The Mayor is set to pick the highest figure for a Council Tax hike which stops him from being capped. So soon after the Mayor has threatened a massive increase in fares, the possibility of such a hike in Council Tax will come as a bitter blow for Londoners. Leaving the Mayor to manage a budget is like leaving a goat to tend the cabbages.

" Given that the Mayor claims that Ministers have given him an extra £10billion, he needs to go a very long way indeed to begin to justify raising Congestion Charge by 60%, bus fares by 11% and Council Tax by double the rate of inflation. The Mayor pushes to the limit every type of tax that he has the power to increase, yet the capital is failing to see improvements in their communities."

ENDS

The first draft of the GLA budget will be discussed on Wednesday 15th December 2004 at City Hall