London council tax rise 'to fund free travel and police'

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Mayor of London Sadiq Khan and London police chief commissioner Cressida DickImage source, Reuters
Image caption,

Sadiq Khan said he would put every penny of the increase to good use

A council tax rise of 9.5% is being planned to help fund policing and free transport for pensioners and schoolchildren in London.

Mayor Sadiq Khan said the increase of about £30 a year will be used to help secure free travel for young people and those over 60.

Of this £15 will go to the Met, giving the force an extra £43m in funding.

An additional £1.59 a year will go to the London Fire Brigade to make changes proposed by the Grenfell Tower Inquiry.

Mr Khan's proposal would see an overall increase of 9.5% or £31.59 a year for an average Band D council tax payer.

Since his first budget in 2017-18, Mr Khan has increased Great London Authority's council tax precept by 31%, from £280 a year to £363.66 a year for a Band D property.

The £15 congestion charge, which was "temporarily" increased from £11.50 last June, will remain in force until at least October, City Hall said.

The extra income from the charge will be combined with the additional council tax increase to fund the free travel concessions, costing between £110m and £130m a year.

Image caption,

The government aims to suspend free travel for under 18s in April

Free travel for under 18s and those over 60 is currently funded by the government but is due to end in April.

A government spokesman said: "This government has repeatedly demonstrated its commitment to supporting London's transport network with more than £3b in emergency funding support arrangements, but we have always been clear that this support must be fair to UK taxpayers."

"I fully recognise that in many households, finances are more stretched than ever before because of the pandemic and this decision is not taken lightly," Mr Khan said.

"I promise all Londoners that every penny of this will be put to good and efficient use, keeping our public transport system running and keeping Londoners safe."

Shaun Bailey, Conservative rival in the upcoming mayoral election, accused Mr Khan of "choosing to tax hardworking Londoners" rather than eliminating waste and perks at Transport for London.

"Over the last four years, Sadiq Khan racked up £9.56b in waste at Transport for London - leaving TfL unable to afford the services Londoners rely on," he said.

"In the middle of a pandemic, he already hiked the congestion charge by 30%, which is a massive hit to the cost of living for Londoners at a time when they can least afford it."

Mr Khan's proposed council tax hike is due to be confirmed at a London Assembly meeting in February.

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