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Camden News - by RICHARD OSLEY
Published: 19 February 2009

Cllr Andrew Marshall

Council tax set to be frozen for two years

‘This will make a real difference to how people feel’

THE Liberal Democrat and Conservative coalition has confirmed plans to freeze council tax for the next two years in a move which they say will “lift spirits” during the economic gloom.
It will also set up a £6million recovery fund to ease the effects of the credit crunch being felt by residents and businesses – although precise details on how it will be used have not been worked out.
As finance chiefs unveiled their plans, Labour rivals said the extreme economic turbulence meant the council should be doing even more and the recovery fund was criticised for being “light” after months of public silence over how Camden will face up to the worst of the recession.
Labour is expected to announce suggestions for an alternative budget next week which will include a tax rebate – effectively a cash gift – to pensioners and free school meals to all of the borough’s primary school pupils.
Labour finance spokesman Councillor Theo Blackwell said there needed to be “serious interrogation” of money hoarded in the council’s rainy day reserves – an £80m unspent piggy bank which the opposition claim could be partly used to help those hit hardest by the crunch.
Labour will also argue that money could be spent on reducing parking charges and securing the leases on council-owned lock-ups in Wren Street, Holborn, to pave the way for a new school.
Lib Dem finance chief Councillor Ralph Scott admitted spending on “nice to have” projects had been cut – he declined to say which he would miss the most – in favour of “priorities”.
Cllr Scott said Camden would be able to afford the freeze by reducing support to union activities, reducing council-wide “communications” and cutting back on weekend cleaning of residential streets.
“As the recession starts to bite, Camden residents and businesses are cutting back on the ‘nice to haves’ – and it’s right that the council should be doing the same,” said Cllr Scott. “We’re making the council run £9.5m leaner over the next two years.”
The size of the council’s reserves was a prudent strategy, Cllr Scott added.
A freeze on council tax has been in the offing for months, but the pledge to do the same next year is being seen by some councillors as an ace card announcement which will provide a filip to the ruling parties in the run-up to next year’s council elections.
The Conservatives were hoping to take the credit for the double freeze, but agreed to a civil announcement that both sides of the partnership had pushed for it.
Conservative leader Councillor Andrew Marshall said: “That will be three freezes in four years of the administration. Freezing council tax has been a priority among the Conservative group since autumn so we are delighted to have reached this.”
The confident early forecast of next year’s freeze has led to jokes in some quarters of the council that Camden should lend its magic crystal ball of how economic conditions are likely to look in 12 months to the Treasury.
Finance director Mike O’Donnell admitted there were “unknowns” ahead but said clarity over government funding had made it easier to plan.
Lib Dem council leader Keith Moffitt said: “We think the freeze on council tax can have a real difference to the way people feel, and the way they behave. It will lift spirits and improve morale at a tough time for them.”
The Town Hall organised a press briefing for Monday lunchtime, but the final draft of the report wasn’t ready in time due to last-minute fine-tuning. Bizarrely, reporters were given a matter of minutes to digest the thick door-stop of a report before the question and answer session began.
Cllr Blackwell said: “The freeze must be seen in the context of the council’s massive £80m reserves it has built up through three years of cuts and hikes to fees for services since 2006. One per cent on your council tax is about £1m per year, so reducing the council tax from 2 per cent to zero is hardly a brave step.”
The budget is due to be ratified by the full council next month.

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