At last night’s Hounslow Borough Council Budget meeting the Labour administration rejected a proposal by the Conservative opposition to cut Council Tax even further by 2.46% which, with the GLA precept reduction included, the total reduction on a Band D bill is 2.19% or £30.60.
The cut would have been funded by the Council Leader’s “Leader and Performance Fund” which has hardly been used and what it has been used for could be funded from other sources. In addition, Hounslow Council’s “unallocated reserve funds” have shot up by an enormous 58% from £15.8m to £25m.
Conservative Leader Councillor Peter Thompson said in the debate:
“This Council has been busy hoarding away millions into its reserves whilst pleading poverty and banging on about Government cuts. Residents will be surprised to discover that Council reserves have shot up by 58% over the last two years. We propose dipping into those reserves to fund the 2.46% tax cut and let residents keep more of their hard earned money.”
There have also been found to be underspends within departments at the Council whilst the majority of what Hounslow has in reserves is earmarked for specific purposes, approximately £80m on top of £25m, does not necessarily mean there are plans to spend them.
Cllr Thompson continued,
“Labour Councillors so often blame Conservative Councillors for current finances when the Council is “awash with cash” to such an extent that using reserves now would help residents. A 2.46% cut to council tax would pose no risk at all to council balances which could easily be supported by using unspent funds.”