Lib Dems freeze Lambeth Council Tax - but Labour mayor demands extra

4.36.29pm GMT Fri 24th Feb 2006

Lib Dems on Lambeth council have frozen Council Tax for the first time ever, keeping bills one of the lowest in London.

But a staggering 13% increase in the money demanded by Labour's mayor at London City Hall will mean bills will still rise.

The mayor's Greater London Authority is the only council in the country allowed to raise Council Tax by more than 5% this year - with a special exemption granted by Deputy Prime Minister John Prescott.

Lib Dem leader Cllr Peter Truesdale said: "We've done everything we can to keep bills in Lambeth low - but unfortunately Labour's tax rises will cost families even more this year."

Lambeth's Council Tax was set this week at £841 for a Band D property, a 0% rise on last year. The freeze has been made possible by the Lib Dems' strong management of the council's finances over the last three and a half years.

But despite the Lib Dems' efforts to keep bills down, the total bill for a Band D property will be £1,129.95 - the extra going straight to the mayor. Part of the cash is being put aside for the Olympics.

Lib Dems are campaigning for a cap on the contribution Londoners have to make to fund the Olympics. But Labour insists Londoners must bear the burden of any cost overruns on the multi-billion pound project.

Despite Labour's tax rises, last year, Lambeth's council tax rate was the seventh lowest in London. And Lib Dem-led Lambeth is on average £120 cheaper than other South London Councils run by Labour - like Merton and Croydon.

"It's clear that right across South London, Labour costs you more," added Truesdale.