Hounslow Council has announced a 4.99 per cent rise in council tax as it lays out the budget strategy for 2024-2025.

In a press conference on Tuesday Leader Shantanu Rajawat discussed measures by local authorities to ensure cuts to services would not be required despite a challenging economic climate.

Cllr Rajawat said that the council had explored every option before considering cuts to services and had "taken the tough decision" to raise taxes instead.

The rises include a two per cent increase in the Adult Social Care precept as well as a 2.99 per cent general increase in Council Tax – which is the largest increase the council can introduce without hosting a local referendum.

The leader said of the decision: "We understand that any increase in tax will be frustrating but the blame lies with the government," adding: "14 years of reckless government has left society broken."

Councils including Hounslow were facing a 'perfect storm' of increasing demand and high inflation the councillor said, with over 50 per cent of all council spending going towards adult and child social care. 

However, even with the hikes this will not sufficiently cover the budget deficit requiring the council to dip into its cash reserves to the tune of £10.5m.

Cllr Rajawat said it was fortunate that they have managed their money well over the years making it possible to use the reserves without any concern of having to declare section 114 – effectively announcing bankruptcy – which has become too common among local authorities as economic pressure begins to mount.

One such pressure is housing.

The council reports a housing backlog of just under 4000 people with the number likely to increase as demand rises.

In response, Cllr Rajawat says the council plans to buy 1000 new homes and build another 1000.

In an attempt to incentivise landlords to re-enter the rental market, the budget proposes the extension of charging an Empty Homes Premium of 100 per cent council tax on properties that have been unoccupied and substantially unfurnished for between one and two years which will come into effect from April 1, 2024.

Councillor Rajawat Shantanu, Leader of Hounslow Council (credit: Facundo Arrizbalaga/MyLondon).

It also plans to introduce a new premium for second homes in the borough.

This Second Homes Premium consists of a 100 per cent extra charge on council tax to properties that are unoccupied and furnished which will come into effect from April 1, 2025.

Cllr Rajawat stressed that council tax rises and dipping into the reserves were part of a wider strategy that would make costly services cheaper in the long run. "We don't want to cut services, you actually lose a lot of knowledge and you don't want to be in that position again where you are rebuilding knowledge."

Instead of cutting local services, the council is aiming to transform them, by decentralising them into smaller more concentrated community hubs. The leader says that 'taking services into locality' will help residents access services in key areas of the borough.

"The transformation of services is vital," the councillor added. The plan aims to increase efficiency and help reduce costs while giving residents a more direct say in the services provided to them.

Cllr Rajawat insists that the strategy will make the council solvent without having to make cuts to services.

The budget is set to be discussed and voted upon by the council's cabinet on 20 February.

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