Opposition Liberal Democrats are today revealing that Labour’s bombshell plans to increase council tax could see a dramatic increase of over 40% over the next four years in Haringey council tax bills.
Under Labour plans revealed in a paper to last week’s Overview & Security Committee of Haringey Council, the total bill for local taxpayers, including money collected by Mayor Ken Livingstone, could mean that a band D council tax, currently £983, rises to over £1,400 in 2006/2007.
Lib Dems have accused the Labour of hypocrisy following the recent council elections, when Labour boasted about freezing council tax levels while at the same time made preparations to reveal their plans for massive increases.
In its recent election manifesto, just four months ago, Haringey Labour told local voters that: “the Council’s finances are now in a sound state, with council tax having been frozen for the past three years.”
Lib Dem budget spokesman, Cllr Jonathan Bloch, says: “This is an incredible U-turn from the council, which has spent the last three years telling us they had sorted out years and years of financial mismanagement and brought the borough’s finances to heel. These huge potential increases, announced just months after the local elections, would be a crippling blow to local council tax payers. Work needs to start now to get these planned rises under control.”
How Labour’s council tax plans add up:
| Annual inflation estimate | Forecast annual real rise in Haringey’s part of council tax | Total annual % rise in Haringey’s part of council tax | Band D rate, including GLA precept | Cumulative total % increase in council tax | |
| 2002/3 | 983.00 | ||||
| 2003/4 | 2.5% | 9.1% | 11.6% | 1097.00 | 12% |
| 2004/5 | 2.5% | 3.7% | 6.2% | 1165.00 | 19% |
| 2005/6 | 2.5% | 4.9% | 7.4% | 1251.30 | 27% |
| 2006/7 | 2.5% | 8.0% | 10.5% | 1382.60 | 41% |
Note: Band D figures include the GLA precept, whose figures have been projected based on past performance.
Lynne Featherstone 