ESTIMATES OF NEXT YEAR'S COUNCIL TAX RISE ABOVE THE SYMBOLIC £1,100 MARK FOR 2003/4

Haringey Council has increased its estimate for the likely rise in council tax over the coming year.Local residents could see a dramatic rise of 13% in their bills this year, with a total rise over four years of nearly half (42%).

The latest figures were given to the Labour Executive for its 22 October meeting and take the projected figure for the total council tax bill for residents for 2003/4 above the £1,100 mark for a typical Band D payer. Haringey’s part of the bill would go up by 13% to £916.60.

Under the current Labour plans, 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 party of hypocrisy over the issue. During the recent council elections, Labour boasted about freezing council tax levels while at the same time was making behind-the-scenes preparations to reveal their plans for massive tax increases.

In its recent election manifesto, just five 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:

“Haringey’s estimates of the council tax seem to be moving ever higher.It is no surprise that the Labour council has moved to scupper plans for a Budget Committee to properly scrutinise their work. It does not bode well for the future. These huge projected increases will be an impossible burden on the borough.”

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% 10.8% 13.3% 1110.75 13%
2004/5 2.5% 3.7% 6.2% 1179.61 20%
2005/6 2.5% 4.9% 7.4% 1266.99 29%
2006/7 2.5% 8.0% 10.5% 1399.93 42%

Note: Band D figures include the GLA precept, whose figures have been projected based on past performance.