London Mayor Proposes 12% Precept Increase

12.01.00am GMT Sat 27th Dec 2003

Last week - four days after the media had been briefed - the Assembly received the Mayor's 2004/05 budget proposals. The Mayor is proposing a 12 per cent rise in his council tax precept. This would mean the average London household (Band D) paying an extra £27 on their council tax bill for GLA services next year. If the proposals go through - and the Mayor has told the Assembly that he does not expect to alter his plans despite the consultation period - then the precept will have increased by 104 per cent under Ken Livingstone.

The London Assembly has the power to amend the budget if a two-thirds majority is achieved, although this power may be redundant should the Labour Party's National Executive Committee agree to Mr Livingstone re-joining the party in early January.

The London Assembly Liberal Democrat Group will be scrutinising the proposals in detail over the coming months. For the past nine months members have been critical of the Mayor's failure to deliver visible improvements and have highlighted the looming black hole in his budget. Ken Livingstone has admitted that there is a shortfall of almost £1billion in the transport budget for 2005/06 with no firm indications from the government that they will bridge this gap.

The deadline for comments on the consultation budget is 15th January 2004. For further information contact Nick Carthew and visit:

http://www.london.gov.uk/gla/budget/04-05/consultation04-05.pdf