COUNCIL tax for households in London’s East End goes up 1.2 per cent from April 1. Protests broke out at last night’s budget meeting as Tower Hamlets Council set the new rate

By Else Kvist

COUNCIL tax for households in London's East End goes up 1.2 per cent from April 1.

Protests broke out at last night's budget meeting as Tower Hamlets Council set the new rate.

The yearly tax on an average 'Band D' property goes up �15 to �880.

The rise is an increase at almost half the current national 3.1 per cent inflation rate, equal to an average of �15 rise for household.

Tory Opposition councillors put forward an alternative budget with a one per cent cut in council tax, rejected by the Labour majority.

BELT TIGHTENING

The recession meant it was time to "tighten the belt and give something back to residents," urged Tory deputy group leader Tim Archer.

The budget increase actually represented a 2.3 percent rise if taking away the GLA's precept which has been frozen this year by London mayor Boris Johnson.

Nearly �700,000 would be saved by scrapping the council's East End Life free newspaper, which he labelled "a propaganda sheet." A further �300,000 could be saved by reducing the press office staff, he added, while director posts could also be cut or merged and contractors' and agency staff fees reduced by 10 per cent.

Both Respect and Liberal Democrat groups also argued for a freeze in council tax. Only one-in-three local authorities in London are raising council tax, including Tower Hamlets.