One in two London boroughs raise council tax by maximum rate

One in two London boroughs have increased their council tax by the highest amount possible without holding a referendum, almost five per cent.

Seventeen London local authorities out of 33 have taken advantage of the government’s adult social care precept which allows them to hike bills by three per cent – an average of £46 a year - to fund services.

Just four authorities - Hammersmith & Fulham, Hillingdon, Newham and the City of London - have chosen to freeze council tax altogether. One, Kensington & Chelsea, will raise council tax without the additional adult social care precept.

These four authorities make up 17 per cent of the 23 councils nationally who are not increasing their charges this year.

Newham council has staved off the effects of "savage cuts from Whitehall" by launching a small business initiative which "transforms existing (council) services and turns them into commercial enterprises".

The council is creating council-owned small busineses, as well as turning existing council services into small businesses to "compete in the free market" and generate income to continue providing existing services to residents.

A Newham Council spokesperson said: "(Council tax) is a regressive tax and affects the poorest the hardest.

"We as a council need to look at how we can be more efficient."

The council said their "entrepreneurial" approach has generated savings of £12.9 million, by streamlining their services.

Newham Mayor Sir Robin Wales said: "We are not increasing the social care precept this year because we have managed our budgets well.

"What we need is for the Government to work with councils across the country to find a real solution to the crisis in social care funding rather than applying a sticking plaster to the issue."

Hammersmith & Fulham council leader Stephen Cowan said: "Once again we are freezing council tax and cutting charges at a time when the Government is telling us to raise tax, but it's not just a smarter budget - it's a more compassionate budget.

"Hammersmith & Fulham Council has a proud record of cutting council tax so residents will be relieved that their bills won't be going up next year."