Cllr David Boothroyd

COUNCILLORS clashed over a decision to spend £19million from Westminster City Hall’s reserves on ensuring another year of frozen council tax for residents.

Conservatives and Reform finance chiefs slammed the decision as a “cynical” pre-election “gimmick” and “convenient” “scam” at the budget setting meeting on Wednesday night.

But Labour said the move was part of a long-term plan and part of a clear vision for the future.

Opposition leader Councillor Paul Swaddle said: “Tonight Labour has brought forward a budget of smoke and mirrors – a pay-nothing-now and pay-a-lot later scam that insults the intelligence of every member in the city.

“They are raiding £19m of reserves to fund a pre-election council tax freeze. It’s a cynical gimmick. It shows a culture of accountability that has poisoned this administration from day one. They are raiding taxpayers’ money set aside for emergencies to create the illusion of low council tax. They are spending your emergency fund to pretend they are being kind to you, while loading the pain to years two, three, and four – conveniently after the election. The harsh reality is that council tax is projected to rise by up to 75 per cent over the next four years.”

Cllr Swaddle accused Labour of “hiding behind photo opportunities” and “role-playing with hard hats and trowels” while breaking manifesto pledges, adding that the Conservatives would if returned to power in May “deliver real value for money”.

The council’s budget plan for for 2026/27 means that a typical Band D council tax payment would be £537.34, including the 2 per cent rise in the adult social care precept. The council said the adult social care precept was a below-inflation rise, meaning the Westminster share of the bill that Band D payers receive will increase by just 20p a week. It says it is making significant investment in affordable housing with £160m allocated to four proposed housing projects at the Brunel Estate, Bravington Road, Sussex Street and the Queen Mother Sports Centre site.

The council also says it is investing £6.2m in North Paddington to tackle social and health inequalities, funding more than 25 community projects, and £3.2m for improving the area around Pimlico Station.

Responding to Cllr Swaddle’s criticism of the “raid” on the reserves, Labour’s finance chief Cllr David Boothroyd said: “Westminster Labour has a long-term plan. It is reasonable for one exceptional financial year to transfer some funds from reserves. This was what we were always planning to do. The reserves have been built up precisely for that purpose. Even after this transfer, Westminster will have reserves that is higher than every other London borough.”

Tempers flared as Cllr Boothroyd pounded the table with a clenched fist as he spoke.

Councillor Alan Mendoza, who defected from the Tories to Reform UK late last year, said: “I had so been looking forward to finally hearing something of substance. After four years of Labour, we thought at the end of it there would be a striking statement of intent going forwards.”
But he compared Labour leader Adam Hug to a cricket captain send­ing players out “to the crease with broken bats”.

Planning chief Geoff Barraclough heckled back at him: “Are you standing again? No. So I don’t really care what you say.”

Cllr Hug said: “By freezing the main West­minster rate of council tax and only applying the adult social care precept, it means the proposed increase in people’s bills put forward in tonight’s budget is the equivalent of an extra 20p a week for Band D properties, because this council will do all it can to help local people with rising bills.

“And let me be clear Lord Mayor, we did not ask for the flexibility in council tax setting given to several inner London councils and we have no plans to use it.

“This budget is an invest­ment in our people, our places and our partner­ships.”