Labour Forces Council Tax Hike

7.37.02pm UTC (GMT +0000) Thu 24th Apr 2003

Lib Dems have won capital funding for improvements to local schools.

Lambeth Council, now led by the Lib Dems, has had to raise this year's Council Tax to pay for the double blow on local people inflicted by Labour.

1. Labour in Lambeth left behind a financial mess

Lib Dems took over the administration of Lambeth last May. They are sorting out Labour's legacy of financial incompetence. Labour's mistakes included:

• Running down the cash in the Council's pension fund by £7 million

• Over £20 million of bad debts

• Spending millions more than the Council actually had in the bank, meaning extra debt repayments.

And Labour were unable to put forward their own alternative budget or suggest an alternative Council Tax level!

2. Labour voted for massive 30% tax hike at London City Hall

£224 on every council tax bill will go to the Mayor of London's office. Labour supported hiking the tax up to this level - to pay for things like glossy newspapers from the Mayor.

Lib Dems wanted a smaller increase - which would still have paid for things like extra police. But Labour insisted on making Londoners pay even more money.

Positive Lib Dem alternative

Nationally, Lib Dem MPs have called for the Council Tax to be abolished, as it is unfair on people like pensioners and low wage earners. Lib Dems want a local income tax, based on people's ability to pay.

South London Lib Dem MP Ed Davey said: "As a first step, we want to see the government cut £100 off everyone's council tax bill - paid for by putting up tax for people earning over £100,000 a year from 40% to 50%".

Good News for schools

And the Lib Dem team has been working hard to improve schools and other local services.

Labour's crazy primary school closure programme created huge problems for parents wanting to find places for their children in local schools. "It's been a disaster - as we predicted," said Lib Dem Anthony Bottrall, now in charge of Lambeth Education.

"The good news is that we've recently won new capital funding that will help improve schools - including more places for primary school children".