MINISTERS THREATEN LIVINGSTONE WITH COUNCIL TAX CAP

10.12.19am GMT Thu 12th Feb 2004

Commenting on the Office of the Deputy Prime Minister's admission in the Liberal Democrat Opposition Day debate that a letter warning Ken Livingstone that he could face capping because of his spending plans, Liberal Democrat Mayoral candidate Simon Hughes said:-

"It is ironic that less than a week after Mr Livingstone was appointed as Blair's Mayor, Ministers now admit that they are desperately trying to bring his reckless I spend now, you pay later policies under control.

"Mayor Livingstone's latest tax proposals will leave Londoners smarting from either another big rise in their Council Tax or a slashing of their services in the years to come.

"Ministers have repeatedly warned that there will be no bail out for the Mayor and his plans for transport, policing and housing in the Capital. Londoners want the next Mayor of London to tell the truth, balance the budget and not promise services they cannot deliver."

ENDS

Notes to editors

Mr Livingstone is alongside 65 authorities who have been threatened with capping following the announcements of overly high Council Tax rises. The admission came in a debate yesterday and is included below.

Mr Hughes has tabled Parliamentary questions to John Prescott at the Office of the Deputy Prime Minister demanding that they publish the letter.

Extracts below are taken from hansard - 10 Feb 2004 : Column 1347

Phil Hope: My right hon. Friend the Minister for Local Government, Regional Governance and Fire has now written to no fewer than 65 local authorities about which we have seen reports of council tax increases that are not in low single figures, and he is planning to call in some authorities. It appears inevitable that the Government will have use their capping powers this year.

------------------------------------------------------------------------------------------------------

Will the hon. Gentleman confirm whether the letter has now gone to the Mayor of London?

Phil Hope: I cannot confirm at the moment whether the letter has gone to the Mayor of London. There is a complicated debate between the Greater London Authority and the Mayor, but he will receive a letter if he is considering such an increase. Indeed, no sooner have I answered the question than I am holding in my hand the letter that has gone to the Mayor of London.

Mr Hughes will later today table the following question:-

To ask the Office of the Deputy Prime Minister if he will place a copy of the letter to the Mayor of London regarding the capping of Council tax as referred to on the 10 Feb 2004 : Column 1347 in the library