Lambeth Council tax to increase following £11.8 million mistake

Councillor Dan Sabbagh

Lambeth council taxpayers are facing another hefty council tax bill following, an £11.8 million mistake by Lambeth’s Liberal Democrat controlled council. The cock-up was uncovered by an Government auditor checking to see if Liberal councillors had followed accountancy rules. Incredibly they found that Lambeth was trying to pay a bill over five years which should have been paid in one.

The mistake means almost £12 million will have to be found this year if the council finances are to remain on track. Labour Councillors estimate that to satisfy the Auditor completely the council would have to pay back £5million – the equivalent of a £50 increase for the average council taxpayer. Liberal Democrat Councillors have already increased council tax by 35% since May 2002.

Lib Dem Finance Lead, Ashley Lumsden, will now serious questions about his competence. Lumsden was already under-fire following his decision to spend £26 million on luxury riverside offices for bureaucrats. Labour councillors are insisting that these bungled accounts are the final straw.

Councillor Dan Sabbagh, Finance spokesperson for Lambeth’s Labour opposition said:

“The Liberal Democrats have been running the council for nearly four years and yet they cannot manage the finances correctly. As a result of their incompetence Lambeth residents are at risk of getting yet another hefty council tax increase.”

“We will demanding a full enquiry. I think Councillor Lumsden’s judgement has now been seriously called into question.”

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