Lib Dems propose council tax freeze

3.25.38pm GMT Wed 25th Feb 2009

At last night's City Council budget meeting the Liberal Democrats proposed freezing council tax levels. The group also opposed Labour cuts to sustainable transport projects, playground maintenance and litter collection. Unfortunately, the council tax freeze amendment was rejected by all three other parties.

Speaking before the debate Brian Watkins, Liberal Democrat Group Leader, said "These are exceptional economic times and people across the city are feeling the effect of the economic crisis. The last thing they will want is the above inflation tax rises being proposed by Labour. We need to be handing money back to struggling families rather than giving it to the Labour government and the Labour council. Along with our national policy to cut income tax by 4p this move confirms that we are the only party committed to reducing the tax burden for people on low and middling incomes."

The groups' proposals involved funding the tax freeze by trimming the unitary preparation budget from £1 million to £800,000 and trimming the council's reserves to just over £4.3 million.

"The six month delay in the unitary decision means some of the preparation budget can be diverted elsewhere and the reserves will still be a healthy £4.3 million. Last year, the council's finance team said that a healthy level of reserves was £3.4 million, so we are still well above that." Commented Brian Watkins

Under pressure from all opposition parties, the Labour Executive reversed their decision to cut the sustainable transport budget, plans to radically reduce the amount of litter bins in parks and public spaces and plans to cut playground maintenance. However, despite Lib Dem opposition, cuts in funding to a car-share scheme and bus service infrastructure went ahead with the Green Party failing to oppose these cuts.

During the debate, the Lib Dems highlighted the £1.8 million of uncollected council tax from the 2007/08 financial year and argued that better financial management and collection procedures could have left the council in a stronger financial position. They also criticised the Labour government for forcing an inflation busting 6.4% rise in tenants' rent. With Cllr Judith Lubbock commenting "It is unfair for the tenants of Norwich to have to find on average an extra £3.50 or more per week. It will hit hardest those who are just above the Housing benefit level and are finding it hard to make ends meet. I find it amazing that this Labour run Council can impose rent increases of 6% and a council tax increase of 3.9%. Do they not understand what is happening to the economy, and the effect that is having on the ordinary person?"

The Liberal Democrat and Conservative groups voted against the Labour budget whilst the Green Party abstained.