Royal borough gives residents £50 rebate

THOUSANDS of council taxpayers are to receive cash handouts to help them survive the recession.

Kensington and Chelsea plans to use little-known legislation to give residents some of their money back.

The move will cost the council about £4 million but will see all residents £50 better off.

Those on council tax benefit will be sent a cheque for £50 in April while those who pay council tax will have their April instalment cut by £50.

The move means that those on the lowest council tax band will see an effective cut of 6.8 per cent on this year's bill. In the highest band the £50 rebate wipes out the planned rise of 3.2 per cent.

Council leader Merrick Cockell said: "The real benefit of this is that it helps those that need it the most. It might not seem like a great deal of money to some people but to others it can mean a week's shopping or a huge boost to helping them pay their heating bills.

"If people don't need it then we are looking at ways to make it easy to pay it towards charity."

Mr Cockell disclosed to the Standard other measures to help residents and businesses survive the downturn,

These including introducing free-parking on Saturdays and lending money to new and small businesses that are struggling.

The free parking in April will see restrictions lifted in Notting Hill, Kensington High Street and King's Road, which have been hit by the economic downturn and new competition from the Westfield shopping centre in Shepherd's Bush.

Although other councils have developed economic recovery plans, the royal borough is the first to give residents cash back.

It can do so through Section 2 of the Local Government Act 2000, which empowers local authorities to "do anything which they consider is likely to achieve the promotion or improvement of the economic well-being of their area".

Mr Cockell said: "The council sets the fifth lowest council tax in the country. It has also delivered greater efficiency year on year so we can now afford additional help for residents in these tough times.

"The £50 dividend has three great merits: it pays the same to all residents liable for council tax, thereby giving proportionately more help to those on the lowest incomes; it focuses the help in April, when it might be most needed; and it can provide a stimulus to the local economy if, as we would hope, those who spend it will do so locally."