Labour cash makes Hull's council tax freeze possible

Hull North MP Diana Johnson has welcomed today's news that £5 million in extra Government funding has allowed Hull City Council to freeze its part of the council tax.

Hull City Council will receive £151.9 million from the Labour Government in 2010-11 for local residents' services - an increase of 3.4%. This is the latest above-inflation increase in Government funding for Hull City Council since 1997.

Many Labour councils across the country plan to freeze council tax for the next year. Given the current levels of inflation and the money being made available, the Government expects the average Band D council tax increase in 2010-11 to be the lowest for at least 16 years.

The Labour Government has warned local authorities, such as Lib Dem-run Hull, that it would put a cap on any excessive council tax increase.

Diana Johnson MP said: "I am pleased that an extra £5 million in Government funding and the threat of capping has helped Hull City Council to freeze its part of the council tax.

"With this above-inflation 3.4% increase in Government funding to Hull City Council there is no excuse for another eye-watering council tax rise. However, this council tax freeze has not been achieved through the genuine improvements in efficiency that the Government wants from town halls.

"As a result, I am concerned that we will see cuts in key local services, increases in charges such as for sports facilities and school meals, and continuing under-investment in areas such as fixing potholes on Hull's crumbling roads.

"I am also disappointed that Hull City Council has decided not to take advantage of Government help to put money into the pockets of many Hull families. For example, Hull is not taking part in the Government's free swimming policy and has now failed to bid for Government funding for the next stage of the universal free school meals pilot scheme."

John Denham MP, Secretary of State for Communities said: "The Labour Government is providing stability and long term investment in Local Government. Local government has now had 13 years of above inflation increases in funding.

"Coupled with the anticipated efficiency savings that councils have identified, the extra funding should mean that local authorities are able to protect and improve front line services while keeping council tax rises to their lowest levels for 16 years.

"Labour councils in London are leading the way with all eight having already announced that they will be freezing council tax while protecting their services"

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