City of Westminster (Parliament Politics Magazine) – Westminster Council votes down proposal to shrink council tax rise, citing a ‘boldly ambitious’ budget that prioritizes vital services and support for vulnerable residents.
At a budget meeting on Wednesday, March 5, council members narrowly rejected an opposition amendment to raise council tax by 3.99 percent instead of 4.99 percent, voting along party lines.
Rather, the Labour government outlined the council’s budget, which includes £1 million for cost of living assistance, a new disruptive behavior team, and additional CCTV cameras.
The opposition said that by limiting the increase in council tax, the £710,000 revenue loss could be made up for by cutting agency employees and finding “efficiencies” in other areas.
Adam Hug, the council’s leader, however, charged that the Conservatives were out of ideas.
He said: “What we have here tonight was a real contrast, between a Labour administration clear on its purpose and ambitious but pragmatic in its approach and an increasingly extreme Conservative party with no new ideas of their own, propelled forward by a sense of entitlement to power and a desire simply to tear down what we are trying to build.”
The 4.99 percent hike, which includes a 2 percent increase for adult social care, was authorized by Westminster City. A Band D property’s council tax will increase by 48p per week, which the local authority claims is still among the lowest rates in the nation.
As part of the failed amendment, opposition leader Paul Swaddle also suggested increasing funding for a legal fund to fight Sadiq Khan’s pedestrianization of Oxford Street and establishing a dockless bike enforcement unit to combat the problem of improperly parked e-bikes.
He said:
“Despite reassurances from the Labour-led council, dockless bikes continue to run riot and block streets and pavements across the city and while the council has announced new parking spaces for dockless bikes and e-scooters it is clear the present scheme is not working. It is time to punish companies who allow riders to irresponsibly park bikes and take enforcement action.”
However, the streets cabinet member, Cllr. Max Sullivan, said the plan was a waste of public funds. He said that in the past year, the council had already imposed fines on operators and compelled them to remove thousands of e-bikes.
Pro-Palestine demonstrators also briefly disrupted the conference before being swiftly led from the room.
The budget for 2025–2026 consists of:
- £140 million to purchase and manage properties for short-term lodging;
- An additional £1 million for cost-of-living assistance; an additional £1.2 million to address rough sleeping;
- £2 million in funding to address antisocial behavior (ASB), which includes hiring more cops to combat noise nuisance, doubling the number of CCTV cameras to 200, and forming a new team to battle ASB;
- An additional £2.6 million for adult social care will be used to raise care assistant salaries and level the playing field for individuals who must pay for social care.
Council leader Hug said:
“Today, we set out a budget that is more than just numbers on a page — it is a blueprint for a Fairer Westminster — a budget that balances financial responsibility with bold ambition. A budget that ensures every resident, no matter their background or circumstance, has the opportunity to prosper here.”
Although Labour has controlled the council since 2022, its majority has shrunk from 31 to 29. The number of Westminster Conservative council members has increased from 23 to 25.
The party lost a seat in the West End to the Conservatives in September, and more recently, they lost the Vincent Square ward by-election.
What are the potential financial impacts on residents and businesses?
Residents may face greater financial pressures as a result of the 4.99% council tax increase, especially those with fixed incomes or little financial flexibility. Household expenses may rise as a result, and local consumer spending may be impacted.
Companies may incur higher expenses if they are liable to business rates or if the increase in council tax has an indirect impact on the purchasing power of their clients. However, by improving the general standard of living and the business climate, the council’s investments in infrastructure and public services may also help nearby companies.
The council’s budget includes expenditures in a range of facilities and services that could benefit businesses and citizens by enhancing quality of life and fostering local economic development.
Although the council’s vote indicates that there is support for the ambitious ambitions described in the budget, some residents may be worried about the tax hike.