Council tax in Barnet is likely to increase significantly in April even though Barnet Council is to receive a 3.5 per cent increase in Government funding for the coming financial year.

It was announced last week that the council will get £216million for 2003/4 a £7.3million increase on this year.

But Councillor Anthony Finn, cabinet member for resources, said it was likely to mean a "significant increase" in council tax bills.

The council has described the grant from the Local Government Finance Settlement as 'a raw deal for Barnet'. It says it has lost out on funding of another £8million because of last year's 'flawed' census, which showed 30,000 fewer residents than the mid-year estimates, both of which came from the Office of National Statistics.

Labour councillors, however, described the funding as 'an above inflation increase'. Labour Group Leader, Councillor Alan Williams, said: "There is no excuse for the council tax to be hiked up in Barnet."

In July, the Tory administration warned that Council tax in Barnet could rise by 14.8 per cent because the previous Labour/Lib Dem administration had taken £10.9million out of council reserves to pay for services this year. With reserves at their lowest level for years, the Tories argue that figure must be found to provide the same level of service for the coming year.

But Labour say as much of the money from reserves went on one-off events, and that their administration saved £6million. They say that since May the Tory administration has spent more than £1million which had not been budgeted for.

December 9, 2002 18:00