Budget plans will cut council tax while boosting jobs and growth

02 January 2013

The Mayor of London has announced plans to help hard pressed Londoners by reducing his share of the council tax bill for the second year running. A draft budget released by the Mayor today (2 January) also sets out plans to help boost London’s economy, fight crime and improve transport services.


In his draft budget the Mayor sets out his intention to reduce the Greater London Authority share of the Council Tax bill by 1.2 per cent, which would mean the bill for a Band D property falling from £306.72 to £303.00.


If the Mayor’s budget is approved it will mean his share of the council tax bill has either been frozen or reduced every year since his election in 2008. He would be on course to meet his commitment to reduce the GLA share of the council tax bill by 10 per cent over his second term as Mayor; and has already cut his share by 20 per cent in real terms since becoming Mayor.


In his budget the Mayor makes it clear that in a difficult economic climate the first item on his agenda is making London safer and he will protect the Metropolitan Police’s operational power by ensuring the level of police officers remains at or around 32,000 during his administration. He also sets out how substantial investment will continue to be made with the aim of boosting jobs and growth and supporting the incredible increase in population expected in London over the next 20 years.


Highlights of that investment include further investment in affordable homes and £300m for new transport projects that will help kickstart new developments in key areas such as Tottenham and Elephant & Castle. These projects are made possible through the Mayor’s unrelenting pursuit of savings and he remains committed to delivering annual savings of over half a billion pounds across the GLA group by 2016.


Despite the Mayor’s focus on savings the budget has required difficult decisions to be made as the GLA group has less resources than in previous years. That requires tough but necessary choices and the budget includes proposals to rationalise the Metropolitan Police and London Fire Brigade Estates.


However the Mayor has made it clear that those proposals will not result in a reduction in Police front counter facilities and nor will they lead to any increase in the London Fire Brigade’s targets for response times, which are already some of the best in the UK. Final decisions about those proposals will only be made after public consultations have concluded.


The Mayor of London, Boris Johnson, said: “Against a difficult economic background my planned budget will cut council tax while making significant strides in growing our economy, fighting crime and improving transport. Next year the Government will carry out its spending review and I will continue to champion the capital to ensure we get the funding necessary to support the economy and quality of life in this great city.”

Notes to editors

1. In light of the Provisional Local Government Finance Settlement, the Mayor has asked LFEPA to indentify £3m of savings, for 2013/14 which is a £13m reduction from previous requests.


2. The Mayor’s 2013/14 draft net revenue spend is £5,531 million. Under the proposal the total GLA precept will be cut from £306.72 a year to £303.00 (for a Band D household).


3 . The Mayor’s proposed council tax precept draft budget comprises of £220.25 to support the Metropolitan Police service, £50.65 for the London Fire Brigade, £20 for the 2012 Olympic and Paralympic Games and £12.10 for transport and other services.


4 . The Mayor’s draft budget consists of – Mayor’s Office for Policing and Crime, Transport for London, London Fire and Emergency Planning Authority, the London Legacy Development Corporation and core Greater London Authority. The total budget is £16.5 billion.


5 . The consultation document, which outlines the Mayor’s proposals, will be sent to all 32 London Borough Councils, the Corporation of London and key stakeholders in the business and voluntary sectors representing London’s wide range of interests.


6 . The document is available on the Greater London Authority website, www.london.gov.uk, enabling members of the public to make their comments. The direct link to the budget homepage is here. The consultation period ends on 23 January 2013.