Council tax is likely to go up next year after the government announced the borough would get a four per cent rise in its grant levels.

Wandsworth says the rise is the minimum amount the government could have given and will not cover an increase in the cost of providing services.

But the council's Labour leader, Councillor Tony Belton, said the claims are just a "well-tried spin" to scare the electorate.

Each November the government announces the amount of grant it will be giving to local authorities the following year. The difference between the grant and cost of providing services is meant by collecting council tax.

Wandsworth says it is too early to say by how much council tax will have to rise. The figures will need to be examined in more detail and are still subject to consultation, they say.

But a spokesman said Wandsworth is concerned that more and more government grant is being ring-fenced, meaning it is given for a specific purpose. This increases the amount of control central government has over what local authorities spend their money on.

Councillor Tony Belton said Wandsworth was just trying to built up the expectation that bills will rise before subsequently announcing a council tax freeze in an election year.

"The grant increase is clearly above the rate of inflation, which has been 2.5 per cent all the time," he said.

December 7, 2001 12:01