Council tax is likely be cut by three per cent for the coming year.

Hammersmith and Fulham Council has reduced council tax for seven of the past eight years and the proposals for 2014/15 would put the annual demand for the average Band D household at £735 in April.

The reduction would cost the council about £1.8million.

The ruling Tory group says lower bills are possible because the council has saved money by sharing management posts with neighbouring boroughs, slashing its £176m debt in half and reforming the way front-line services are delivered.

However, the Labour opposition said the Conservative administration was wasting taxpayers’ money on unnecessary projects, such as £5m on press and publicity, while gaining funds through so-called ‘stealth taxes’, such as a surge in fines for motoring offences in controversial box junctions.

H&F Opposition Labour leader Councillor Stephen Cowan
 

Its leader Councillor Stephen Cowan said: “I welcome the council tax cut and confirm that Labour will cut council taxes and stick within the already confirmed budget totals should there be a change of administration next year.

“It is notable that the Conservatives have shifted their funding emphasis so they now raise more money from parking charges, traffic fines and other stealth taxes than they do through council tax.Considering the council is wasting at least £70m on unnecessary new offices and much else it’s clear how there is much more scope for putting money back into the pockets of hard pressed residents.”

Council leader Nicholas Botterill said: “While most major household bills have been going up and up, I believe this council has done more to reduce the cost of living than virtually any other organisation in the country.

“By relentlessly rooting out unnecessary costs and cutting debt, we have become a much leaner council where the focus is solely on the front line services that matter most to residents.

“While improving services we have been able to ease the cost of living by passing cost savings back to taxpayers in the form of annual tax cuts.”

The council will debate the budget proposals in February.