Westminster City Council has pushed through plans to increase council tax by the maximum allowed over the next 12 months, as it battles pressures including rocketing temporary accommodation costs.
The Conservative opposition described the budget as “disappointing” and “disrespectful”, with its own amendment proposing freezing the core tax voted down.
Opening the debate on the 2024/25 budget, council leader Adam Hug said since taking power in 2022, the administration has shown it is able “to take both tough decisions today while investing for the longer term gains of our communities”.
“This is a budget for a Fairer Westminster,” he said.
Cllr Paul Swaddle, leader of the opposition, said following the meeting the Conservative group has “real concerns” about the costs of Labour’s “pet projects”, and initiatives such as increased car parking charges.
“The Westminster Conservative Group would have frozen council tax by pulling back unnecessary spending,” he said.
“This year will see Wandsworth supersede Westminster as having the lowest Council tax in the UK, which is a worrying sign of things to come.”
Including the Greater London Authority (GLA) precept, set by the Mayor of London and due to rise by 8.6 percent this year, the average Westminster resident will be paying £973.16 for 2024/25 after the 2.99 percent increase to council tax and two percent adult social care precept. While more than the £961 set by Wandsworth, this remains far below London authorities such as Croydon and Bexley, which are among those in which the rate is above £2,000.
Westminster was able to put a balanced budget before Full Council on 6 March, though is warning of a projected £48mn gap over the next two years.
To balance the books for the year ahead, the council says it has found £20.2mn in savings, which are a combination of cuts and additional income. Among these are a hike to fees and charges, estimated to bring in £1.8mn, and increased parking costs, to the tune of an additional £2.9mn.
The council has accused the Government’s funding for local authorities of being insufficient, given the £350mn in savings it has had to make since 2010 and growing pressures on areas such as adult social care and housing.
Westminster has a particularly acute challenge regarding temporary accommodation. Increases in the numbers of people requesting support has resulted in an additional £38mn needing to be found for 2024/25, with the council recently investing £85mn more to enable it to purchase new properties at pace.
At the Full Council meeting, Cllr David Boothroyd, cabinet member for finance and council reform, said: “We have been hit by a wholly unprecedented demand for temporary accommodation. The council has a legal duty to provide it, and that is now forecast at an additional £38mn in 2024/25. In 22 years on this council, I have never known a sudden demand of extra spending of that scale.
“To put it in terms that will be understood across the chamber — it’s six whole mounds every year.”
Cllr Swaddle, who was voted in as the local Tory leader in January, began his speech noting he had seen an “excellent budget” that day, before clarifying: “It’s not the budget of this council tonight, it was the one delivered by the Chancellor. That was a budget that understands what this country needs.”
Cllr Swaddle continued to describe the administration and its proposals as “disrespectful”, having published plans such as new CCTV cameras without taking them to the chamber first, and announcing consultations on Facebook without details provided to councillors.
As well as the administration’s plans to increase council tax by 2.99 percent, Cllr Swaddle queried items such as the £450,000 earmarked to tackle the ecological emergency, saying it is “not the right time to be committing such large sums to this project”.
The administration’s record of keeping the city’s streets clean was raised by several opposition members throughout the evening, especially in light of its plans to cut the number of cleaners over summer and winter, projected to save £280,000.
Cllr Tim Mitchell in particular pushed back on the saving, telling the chamber: “These proposals are putting Westminster’s street cleaning gold standard at risk.”
Labour deputy leader and cabinet member for adult social care, public health and voluntary sector, Nafsika Butler-Thalassis, drew the loudest response from the Tory benches when she commented not on the budget, but the proposed increase to members allowances of 3.88 percent. She accused the previous administration of intentionally keeping the rates low “to discourage people from modest backgrounds”, drawing vocal protests from opposition members.
Alongside the savings, the council has planned a host of additional investments over the financial year. These include £1mn for a new mobile CCTV network, a further £1mn to the Cost of Living Support Fund, and £1.2mn to increase the hourly rate for workers in the social care sector, up £1.50 an hour. The Four Year Capital Programme also includes longer-term funding for schemes such as the Church Street Masterplan and the Oxford Street Programme.
Following the meeting, Cllr Hug said: “Over the last eighteen months we have focused on creating a city which is fair for everyone. Westminster remains a city of two halves, as the home of the nation’s most affluent areas, and some of the most deprived.
“This year, we will narrow in on addressing the climate emergency and providing direct support to residents facing hardship. Now more than ever as we continue to face high costs, we are determined to reduce inequalities in Westminster.”
The Conservative amendment was voted down along party lines, before proposals on items including the Labour-proposed budget, Housing Revenue Account and members allowances were agreed.
Westminster City Council: Full Council, Wednesday 6 March 2024.
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