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Three Conservative council leaders in London have written to Andy Burnham, accusing the Government of “devolving blame” for council tax hikes.
The leaders of Westminster, Wandsworth and Kensington & Chelsea councils say they are being forced to significantly increase council tax or slash services to plug a hole left by cuts to central government funding.
It comes after the “fair funding” review of council allocations resulted in a formula that redirects cash to more deprived areas.
Shadow local government secretary Sir James Cleverly said Londoners are facing a “Burnham penalty on their council tax”.
The Tories are calling for Local Government Secretary Angela Rayner to urgently review the funding changes that they say are “set to worsen the lives of local residents across London and the South East”.
However, a Government spokesperson said they are “fixing an outdated funding system” whereby some of the wealthiest parts of the country “benefitted from exceptionally high levels of government support, while communities facing greater pressures lost out”.
They added that the reforms make the system “fairer for taxpayers across the country”.
In a letter seen by the Press Association, Westminster City Council’s Paul Swaddle, Wandsworth Council’s Robert Morritt and Kensington & Chelsea Council’s Elizabeth Campbell said the Government’s funding formula “punishes low tax councils”.
The Tory council leaders said: “If our councils do not impose council tax rises, our communities face considerable cuts in funding for local services.
“This is not just devolving blame, it is devolving council tax rises and government cuts.
“This is fiddled funding, cooked up in Whitehall but leaving town halls to carry the blame.
“These tax rises are in addition to the new top-up council tax on many homes in our councils – and none of the revenues from this tax penalty will be retained by councils or by the Mayor of London.
Six councils have been granted two-year “funding realignment powers”, which enables them to increase council tax beyond the 5% threshold.