Newham councillors recommended to increase council tax by two per cent
- Credit: Archant
Council tax in Newham could be increasing.
At a cabinet meeting last night, councillors were recommended to approve plans to raise the tax by two per cent.
Council tax in the borough has been frozen for the last 10 years, but because of this, it’s estimated the council has lost £82million which could have been used to fund local services.
Following her election, new mayor Rokhsana Fiaz ordered a financial ‘health check’ of the council’s budget, in a bid to make it more transparent.
Because of this freeze, a population increase which has put extra pressure on services, and cuts to funding from central government, the Chartered Institute of Public Finance and Accountancy (CIPFA), who conducted the review, recommended councillors consider a tax increase.
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A one per cent increase would generate £750,000, while central government has recommended raising rates by three pc.
The council said the changes to tax could bring in an extra £3.75m to pay for children’s services and highway maintenance.
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