Householders aged 65 or more living in the London
Borough of Hillingdon will have their council tax frozen for the next three
years, writes Paul Lewis
The Conservative council, which won control of the borough in May 2006, believes
it is the first in Britain to freeze council tax for older residents. About
13,000 households whose income or savings are too high to get council tax
benefit will be included in the scheme.
The change means the council tax charged by Hillingdon in 2008/09, 2009/10, and
20010/11 will be the same as it is this year, an average of £1350. However,
Hillingdon has no control over the tax levied by the Greater London Authority
which will almost certainly rise each year. This year the GLA tax, including £20
towards the London Olympics, is £380 for the average Hillingdon property, up
5.3% on 2006/07.
The freeze promised from next year follows the decision by Hillingdon to give
older residents a 2% discount off their council tax this year. That knocked £27
off the average bill. Next year the freeze could double that saving. And it will
give all householders aged 65 or more the peace of mind that for the next three
years the biggest element of their council tax bill will not rise.
This year’s 2% discount will cost Hillingdon £400,000 (out of a budget of £250
million). Freezing the tax next year will probably cost the same again. The
money will come out of savings of £15 million a year from what it calls its
‘improvement programme’ – cutting costs on the amount spent to run the borough.
It has similar targets over the next two years.
Political opponents claim that other residents will pay for extra help to the
over 65s. Mike Cox leader of the Liberal Democrats told the local paper that it
was “welcome for the poorest pensioners” but called it “a political stunt which
will hurt many residents faced with rising mortgage rates and those on lower
incomes who can ill afford it.”
However, it is unlikely any candidate will dare suggest ending the scheme when
the council is up for election in 2010, just as the last year of the freeze
begins.
Hillingdon’s move appears to have received no national news coverage at all. But
once the word spreads other councils around the country will surely come under
pressure to do the same.
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