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| Boris Johnson's council tax cut is tiny but ushers in a big campaign attack | Boris Johnson's council tax cut is tiny but ushers in a big campaign attack |
| (about 17 hours later) | |
| Much derision has greeted Boris Johnson's announcement that his 2012/13 budget will include a one per cent reduction in the mayor's portion of Londoners' council tax - the precept, as it's known to its friends. His own press release spells out that this will represent a "modest" reduction of £3.10 per household a year, which my abacus says works out at less than a penny a day. Big deal? | Much derision has greeted Boris Johnson's announcement that his 2012/13 budget will include a one per cent reduction in the mayor's portion of Londoners' council tax - the precept, as it's known to its friends. His own press release spells out that this will represent a "modest" reduction of £3.10 per household a year, which my abacus says works out at less than a penny a day. Big deal? |
| Well, no and yes. It's less than peanuts in financial terms, of course, but I assume the move has a greater purpose, even beyond grabbing a headline or two - modest or otherwise. Boris invites us to see the cut as the culmination of a virtuous record sustained throughout his mayoral term of freezing the precept each previous year. He talks this up by saying: | Well, no and yes. It's less than peanuts in financial terms, of course, but I assume the move has a greater purpose, even beyond grabbing a headline or two - modest or otherwise. Boris invites us to see the cut as the culmination of a virtuous record sustained throughout his mayoral term of freezing the precept each previous year. He talks this up by saying: |
| Assuming 3% inflation in real terms Council Tax bills will have been reduced by 16% between 2009-13. | Assuming 3% inflation in real terms Council Tax bills will have been reduced by 16% between 2009-13. |
| It doesn't say what this assumption-embedded 16% means in terms of actual money. I've asked City Hall to let me know. I doubt it will be a huge sum, but again that's not really the point. | It doesn't say what this assumption-embedded 16% means in terms of actual money. I've asked City Hall to let me know. I doubt it will be a huge sum, but again that's not really the point. |
| Boris's eagerness to talk about his approach to council tax is designed to concentrate minds on a larger debate about financial management in the GLA Group. The Tory mayor's speech last week about the budget in draft form contained almost as many references to his Labour rival Ken Livingstone's spending and precept-raising during his previous term as it did to his own plans. | Boris's eagerness to talk about his approach to council tax is designed to concentrate minds on a larger debate about financial management in the GLA Group. The Tory mayor's speech last week about the budget in draft form contained almost as many references to his Labour rival Ken Livingstone's spending and precept-raising during his previous term as it did to his own plans. |
| The aim is to depict Ken as an innumerate, irresponsible spendthrift. Boris's campaign will miss no chance to whistle up recollections of tales of Livingstonian imprudence, whether true, imagined or spitefully exaggerated at the time. | |
| It can't do them any harm. Research by Ipsos MORI presented at a Livingstone-organised conference in 2009 showed that a feeling that Ken made poor use of public money was significant in the suburbs in particular. | It can't do them any harm. Research by Ipsos MORI presented at a Livingstone-organised conference in 2009 showed that a feeling that Ken made poor use of public money was significant in the suburbs in particular. |
| That's where Boris's support is strongest and he'll want to keep it that way, not least because Ken's promise to cut public transport fares will appeal in those parts of the metropolis too - Londoners who commute by Tube to the centre from Uxbridge or Upminster every day would no doubt be very grateful for a 7% cut in the cost of their travelcards. | That's where Boris's support is strongest and he'll want to keep it that way, not least because Ken's promise to cut public transport fares will appeal in those parts of the metropolis too - Londoners who commute by Tube to the centre from Uxbridge or Upminster every day would no doubt be very grateful for a 7% cut in the cost of their travelcards. |
| Ken's initial response to Boris's announcement has been to reiterate that he's pledging to save Londoners more. He says: | Ken's initial response to Boris's announcement has been to reiterate that he's pledging to save Londoners more. He says: |
| I will save Londoners on average £1000 over four years by cutting the fares on October 7th this year. I believe in tough times Londoners need a Mayor who will cut the cost of living. Boris Johnson's announcement today would hardly pay for a single tube journey. | I will save Londoners on average £1000 over four years by cutting the fares on October 7th this year. I believe in tough times Londoners need a Mayor who will cut the cost of living. Boris Johnson's announcement today would hardly pay for a single tube journey. |
| But Boris's move on council tax is indirectly a further challenge to Ken's "fare deal" maths, which have attracted a succession of assessments. See here, here, here and here. All this serves to remind me of something Ken said to Martin at MayorWatch last autumn. I quote: | But Boris's move on council tax is indirectly a further challenge to Ken's "fare deal" maths, which have attracted a succession of assessments. See here, here, here and here. All this serves to remind me of something Ken said to Martin at MayorWatch last autumn. I quote: |
| My first eight years as Mayor was about getting money out of Government, in my next term it's going to have to be about prioritising the things that matter most which is actually keeping money in people's pockets, keeping the police numbers up, the fares down, the council tax down. | My first eight years as Mayor was about getting money out of Government, in my next term it's going to have to be about prioritising the things that matter most which is actually keeping money in people's pockets, keeping the police numbers up, the fares down, the council tax down. |
| I was persuaded in 1976 about monetarism and that you can't borrow your way to a boom. I'm in favour of balanced budgets. | I was persuaded in 1976 about monetarism and that you can't borrow your way to a boom. I'm in favour of balanced budgets. |
| There's two things you've got - one is to try and get the debts cleared that Boris has built up, the other is to keep the spending power in people's pockets. Whether it's the council tax or the fares, if you're taking money out of people's pockets that's money they're not circulating in the economy. | There's two things you've got - one is to try and get the debts cleared that Boris has built up, the other is to keep the spending power in people's pockets. Whether it's the council tax or the fares, if you're taking money out of people's pockets that's money they're not circulating in the economy. |
| We have a cost-cutting credibility bidding war. What will Ken's next move be? | |
| Update, 14:43 Lib Dem candidate Brian Paddick responds: | Update, 14:43 Lib Dem candidate Brian Paddick responds: |
| The London Liberal Democrats have a fully costed proposal to reduce council tax by 3%. As a Liberal Democrat Mayor I am determined to make a real difference to Londoners, not just token gestures. Whilst any reduction in council tax is welcome I'm not going to spend too long working out how I would spend my extra £3.10 a year. | The London Liberal Democrats have a fully costed proposal to reduce council tax by 3%. As a Liberal Democrat Mayor I am determined to make a real difference to Londoners, not just token gestures. Whilst any reduction in council tax is welcome I'm not going to spend too long working out how I would spend my extra £3.10 a year. |
| Mind you, Brian, 3% would only be around a tenner a year. John Biggs, budget spokesperson of the London Assembly Labour group, is even more scathing: | Mind you, Brian, 3% would only be around a tenner a year. John Biggs, budget spokesperson of the London Assembly Labour group, is even more scathing: |
| We support a freeze in difficult times but this tiny cut will save Londoners pennies - just about enough to buy one extra onion a month. | We support a freeze in difficult times but this tiny cut will save Londoners pennies - just about enough to buy one extra onion a month. |
| I can see those Boris Onionhead campaign masks already. But that's just the start of Biggs's shopping list. He continues: | I can see those Boris Onionhead campaign masks already. But that's just the start of Biggs's shopping list. He continues: |
| Boris Johnson's 6p a week council tax cut saves Londoners enough to buy: One box of organic eggs a year One cooking apple a month One tin of Tesco value beans a month One onion a month One packet of salted peanuts a year. | Boris Johnson's 6p a week council tax cut saves Londoners enough to buy: One box of organic eggs a year One cooking apple a month One tin of Tesco value beans a month One onion a month One packet of salted peanuts a year. |
| OK, Peanuthead masks. | OK, Peanuthead masks. |