Council aims to charge zero tax

Westminster is planning to become the first authority in the country not to charge council tax.

The Tory-run borough claims that efficiency savings and revenue raised by private-sector deals mean it can afford not to charge for any administrative costs.

Deputy leader Kit Malthouse said residents could be paying nothing for town hall services within five to eight years.

However, they will still have to pay for police and fire services - and the precept from the Mayor of London.

Councils across the country will discover tomorrow what government grants they will receive when Chancellor Gordon Brown unveils his pre-Budget report. A figure for council tax will then be set.

Westminster band D residents currently pay £605 in council tax, up £35 on the previous year but still one of the lowest figures in the country.

This year, local government leaders are expecting substantial extra funding to stave off the threat of high increases in an election year.

Westminster receives about ?200million from government and takes £40 million from council taxpayers. Three years ago it put up its council tax by 28 per cent.

But Mr Malthouse said the council had rectified that by taking £40 million out of the budget through efficiency savings such as customer services initiatives, procurement savings, contracting out services and income from deals with the private sector on leisure centres.

Yesterday he told the council's top 50 managers there was no reason why Westminster should not aspire to charging zero council tax for town hall services if it can continue to save costs and raise revenues.