Massive Newham Tax Hikes. A Residents’ Rebellion?

You all know the story about the frog. If you throw a frog into boiling water it will hop straight out. If you put it in cold water and bring it to the boil, you’ll get perfectly poached frog legs.

In order to mask her incompetence, Mayor Fiaz is treating the people of Newham like frogs.

History

Just a bit of history. For a decade the former mayor was able to run the council services without raising council tax. Not once. OK, in one year he did add the Social Care supplement. But for 10 years the council ran efficiently, balanced its budgets and despite all the horror stories from Fiaz’s supporters, never went in for the slash and burn cuts regime that characterised many councils and now characterises Newham Council. 

Left-wingers used to talk about how they hated regressive taxation; that is taxation that hits everybody regardless of ability to pay. Income tax is graduated, it’s progressive. Council tax is the same if you are a pauper or a millionaire. It is regressive.

We have made some enquiries of current and past councillors. We wanted to know how many councillors objected to the financial planning under Wales.  It seems that there were very few. They might have been loquacious on social media but when it came to challenging policy on the council, they were strangely silent.

There was one exception it seems. Unusually the Labour Group had allowed a free-vote on the budget in February 2018. Given this freedom two of the then Momentum stalwarts John Gray and John Whitworth proposed an amendment to raise council tax. The amendment was opposed and when it came to the vote it garnered exactly two votes, those of Whitworth and Gray. When the substantive vote on freezing council tax was taken, with 40 voting members in the chamber, the vote was; For:38. Abstentions:2. Against:0.

Hypocrisy

Amongst those voting against the budget amendment and for the council tax freeze was one Cllr Rokhsana Fiaz and her Finance Tsar, Cllr Terence Paul. This was the same Rokhsana Fiaz who went on to complain that Wales left her only £54m in balances, and that he should have raised the council tax every year to give her more money to spend.

Tax and Cut

We have noted before that Labour used to be known as a TAX and SPEND party. In Newham, under Fiaz, it has become a TAX and CUT party.

Here are the three ways in which the TAX and Cut party has increased the costs on residents by almost £1000 for a typical Newham Family.

1. Upped the council tax burden. Residents in Band D properties are now paying about £300 pa more than they were when Mayor Fiaz came into office.

2. Cuts to free school meals. The cost burden has been shifted onto families, so a family with two children at primary school will now be paying £700 pa more to feed their children.

3. Switched the parking permit scheme so that every car owner will now be paying at least £60 and some will be paying much more, (up to £200).

In the space of two years Mayor Fiaz has hiked the local tax burden on residents. A typical family can be expected to be paying £1000 a year more than they were two years ago. Some will be paying even more.

To assuage the concerns that were clearly raised by some councillors, Mayor Fiaz took a recommendation through cabinet on 1st December. Cabinet agreed to give a 20% discount on the residential parking charge. For most people this will mean about £10. That’s right, a tenner. Tax goes up by £1000 and those residents with cars get £10 relief. 

The council struggles to pay its way and yet squanders £500,000 in order to buy some good-will with car owners. Fat chance!

The implications of Fiaz’s Tax and Cut regime seem to have dawned on some Newham residents. A group that appears to go under the name of Residents’ Voices has circulated the leaflet below in various wards. In the pre-Wales days, opposition to the tax and spend council resulted in Residents Associations and Independents loosening the Labour stranglehold in various wards. We wonder if history is about to repeat itself.

As always, if Newham Council or the Mayor would like to respond and correct any of the financial statements that we have made, we will be happy to include a correction. If not, well, you can draw your own conclusions.