Keeping up with Labour lies

10.01.24am BST (GMT +0100) Fri 31st Mar 2006

Labour have recently been making ever-more misleading claims regarding Lambeth's finances and services. The truth - difficult as it is for Labour to accept - is that in the last four years, Lambeth has seen both sound financial management (and the sixth-lowest council tax out of 33 London boroughs) as well as an increase in the quality of services provided, with the District Auditor reporting 'significant progress' in how the Council is run. The following - confirmed by independent sources - indicates just how inaccurate and desperate are Labour's claims.

Under the 1998-2002 Labour administration, Lambeth was rated as 'poor', the bottom category out of five; service provision was weak, and progress slow. The Audit Commission said that under Labour 'there are few areas of high quality service delivery.' With the Lib Dems able to push changes through the council, fast forward to January 2006. The Annual Audit and Inspection letter from the District Auditor dated 23rd January stated: 'The Council has had another successful year. Significant progress has been made in how the Council is run.'

Under the Lib Dems Lambeth has left behind Hackney, Havering and Waltham Forest (all of which are low 'one star' authorities), and overtaken Barking and Dagenham. Lambeth is now in the same category as Redbridge, Merton, Hillingdon, Harrow and Barnet (all with two stars and improving well, but all of which were better rated than Lambeth in 2002).

Lambeth in fact has the sixth lowest Council Tax out of the 33 London boroughs. Council Tax rises in Lambeth over the last four years have been fuelled by the Mayor of London, with his inflation-busting hikes of 29% in 2003, 7.5% in 2004, 5.5% in 2005 and 13% 2006. Government grants, which make up three-quarters of what Lambeth spends each year, have been below inflation since 2002. The government includes in its figures money which has had to be passed directly on to schools - this is the only way they can show above inflation increases. This shortfall in government funding has also affected other London councils (eg Conservative controlled Wandsworth has increased its Council Tax by 52% since May 2002).

There are no plans for 'unfair tax hikes': the 2006 Lib Dem manifesto states that Lib Dems would 'keep Lambeth's Council Tax below that of south London Labour boroughs'. Remember, Lambeth has the sixth lowest Council Tax out of the 33 London boroughs and Labour boroughs in south London have a Council Tax £150 on average higher than in Lambeth.

Since May 2002 Lib Dems have improved Lambeth's finances in many ways:

*turning a £28 million deficit inherited from Labour in 2001/02 into a credit balance sheet, with accounts signed off in time - which never happened under Labour

*£150 million of Lambeth's debt paid off, saving the Council £6 million a year in interest

*Council Tax collection rate increased to over 93% (up from only 83% under Labour) bringing in a further £6 million a year

found £56 million of savings in the Housing Revenue Account which is being invested in the borough's homes

getting better value for money:

*£300,000 saved by centralised procurement

*£500,000 of investment from Cleanaway at Lambeth's request

*Re-negotiating with NTL over the telephone contract saved Lambeth around £500,000 in 2005, following previous savings of £300,000

*Savings from the Revenue & Benefit contract of £2.4 million over 2 years.

So don't believe anything you read on Labour's leaflets!