Barnet Labour councillors formally agree to refund 1% council tax rise
Manifesto pledge to be delivered as part of cost-of-living package
Decision effectively equivalent to 2% of council tax, double the original pledge
Labour councillors on Barnet Council formally agreed the mechanism and timing for refunding this year’s 1% council tax rise at a recent meeting of the Policy & Resources Committee (P&R, 29 Sep), fulfilling one of Barnet Labour’s Top 5 local election pledges and a commitment to help people with the cost-of-living crisis.
The Committee agreed a two-stage approach to deliver the refund in recognition of the need to help those most in need now, and also to honour the spirit of the pledge to give back 1% to all residents in the most cost-effective way.
The refund will therefore be delivered in a targeted way this year through a Residents Support Fund of £2m (equivalent to 1% on council tax) which will provide financial assistance to residents in crisis now, and in addition, universally through a 1% refund on all council tax bills in 2023.
The universal refund on next year’s bills avoids costs to the council taxpayer of around £200,000 for consultation, re-billing and repayment which would be incurred if a cash refund was given now. Residents also benefit from an ongoing lower council tax level if the refund is delivered through bills next year which is worth more than a cash refund.
Taken together, the targeted and universal refund is equivalent to 2% of council tax and gives back £4 million to residents – effectively double the original pledge.
Leader of Barnet Council, Cllr Barry Rawlings said: “One of the first things we did after winning the election was task officers to find options to deliver our pledge on the council tax refund, and we have now formally agreed how this will be done.
“We recognise that some residents are struggling and in need of urgent assistance now, and also that we made a promise to all residents that they would be refunded this year’s 1% increase.
“Our decision at Policy & Resources provides that immediate cash support now to those most in need and honours our commitment to all residents in the most cost-effective way – effectively doubling what we offered in our original pledge.
“I am delighted to deliver on yet another key manifesto pledge to the residents of Barnet.”
