AN INADEQUATE government grant is forcing Hounslow into raising its share of the council tax by 18.5 per cent - or face making unpopular reductions in social services, environmental services and the voluntary sector, councillors from across the political divide and the Association of London Government warned this week.

The council claims that the grant, whose increase on last year is double the current inflation rate at 5.8 per cent but restricts the way the money is used, will force them to increase their share of the council tax by a massive 18.5 per cent to avoid reductions to services, representing an increase of £3 a week for a band D property.

Alternatively, a rise of 12.2 per cent in the council's share of the council tax is being considered, representing £1.97 a week, but this would result in a £4.1 million reduction that would hit services such as the voluntary sector, day care support for families and park maintenance. Residents will be consulted on which they would prefer.

The figures would still not include the Mayor of London's share of the council tax, which last year accounted for a further £173.88 for a band D property, which would mean the final level of council tax levied would be even higher. His proportion will be announced mid-February.

The Association of London Government has formerly objected to the local government finance settlement, which will see London receive a 5.3 per cent increase compared to 7.2 per cent received by metropolitan districts and 7.6 per cent by shire districts, saying that it fails to reflect deprivation and additional burdens being placed on London boroughs including increases in pension costs, national insurance and the landfill tax.

Though above current inflation rates, much of the grant is ring-fenced, meaning that only some services will see any increase, while others will lose. While education will now take up 57 per cent of Hounslow's budget, other service areas, in particular social services and street care will face an effective cut in grants.

Announcing the budget, leader of the council, John Chatt, said: Like all London boroughs, Hounslow faces tough choices this year. London's settlement has been below other parts of the country, which does not allow us to continue funding our services at existing levels.

As a result, many London boroughs are looking at higher than usual tax increases this year. We have taken the recommendations of the cross-party Scrutiny Committee, who looked in detail at the cuts and savings proposals facing the council.

Based on this cross-party view, we have put forward two budget options that we believe will limit the impact on vital community services and give the council the chance to modernise and look to the future.

I know that no tax rise is ever welcome but we also know that protecting local services is a priority for our residents. We are consulting them on two options.''

He added that he welcomed the budget as a way of delivering improved services for our residents'', saying it would force the council to look at ways of delivering good services at the best prices''.

Cllr Ray Fincher, leader of the borough's Liberal Democrats and a member of the cross-party budget scrutiny panel, told the Times:

Quite frankly, all the London boroughs will have a miserable time, as the settlements have been shifted to the North and North East - the government's treatment of Local authorities is abysmal.

I actually feel sorry for the executive and John Chatt - we've been pleading for extra funds but no-one has listened.

The real problem is that the funding is too restricted - we want to say to Prescott please sir, can we have some more?'

Maybe Prescott himself should move in and try and run Hounslow while we go into Whitehall and run the country.''

A spokeswoman for the Deputy Prime Minister replied: Hounslow has been given a 5.8 per cent increase - that's over twice the rate of inflation, and we think that is a good, fair increase that takes into account the borough's increased commitments, and do not see the need for any more.''

She did not comment on whether Mr Prescott would take up the offer of trading places with Mr Fincher.

The announcement came as leader of the Tories, Cllr Peter Thompson, accused the government of rigging'' council grants:

The government has loaded local bodies across Hounslow with new burdens, taxes and bureaucracy. Local authorities' needs have risen far faster than central government funding. We call on all local residents to join our campaign to pressure Whitehall to give us our money back!''

January 31, 2003 11:00