Royal Borough set to lose out again in council tax

16 July 2003

Government plans to revalue all domestic properties in Spring 2005 could land the Royal Borough's residents with a 15 percent leap in average council tax bills, according to a report out this week from the Association of London Government (ALG).

Since the last valuations in 1991, there has been a sharp rise in the value of many properties in the Royal Borough. Revaluation could see these properties move up one or two bands on the council tax scale and as a result local residents will be left with another steep hike in their bills and will be left paying disproportionately more council tax than people in other regions. In fact the ALG's report suggests 75 percent of Londoners would be paying more council tax than all but 10 percent of people in the north.

Added to the direct impact on local residents' pockets, the revaluation poses a serious threat to local services, with the Borough set to lose out significantly in terms of grants from the Government. The ALG's report suggests the effects of revaluation could mean a further £10 million cut in the grant for Kensington and Chelsea.

Despite this rather gloomy outlook, there are some positive notes for the Royal Borough. The ALG is calling on the Government to introduce a regional banding system to ensure a fairer system across the country after revaluation, with the ALG's analysis indicating this solution would be both sensible and practical. However should it fail to persuade legislators, then the Royal Borough will be looking to the Government to offer some protection for local residents and local services, at least by phasing in the council tax increases to dampen the impact of the revenue shortfall.

Council Leader, Councillor Merrick Cockell, greeted the conclusions of the report from the ALG, adding "Our residents have already faced a 17.4 percent increase in Council Tax this year. If revaluation goes ahead as proposed it would be another blow to households in the Royal Borough - they could see a reduction in government funding and pay a bigger share of the cost of local services."

The challenge that lies ahead is to persuade the Government to consult on the best approach to maintain a fair and acceptable council tax system.

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