Agenda item

OLYMPIC AND PARLYMPIC GAMES PRECEPT

Minutes:

Motion on behalf of the Joint Administration

 

Under an agreement between the GLA and the government of the time, from 2006/07 Council Tax payers across London were required to contribute £625m towards the cost of the 2012 Olympic and Paralympic Games. This was equivalent to an annual charge of £20 per household (Band D) which was collected by the GLA via an Olympic Precept included in council tax bills. In 2016/17 the final instalment of the £625m was paid and Council Tax payers saw the £20 precept reduce to £8 accordingly.

 

As the full £625m had been paid off, the expectation was that the remaining £8 would be returned to Council Tax payers in 2017/18. However, the draft 2017/18 GLA budget does not propose to return this sum.

 

Furthermore, while the Games were a great success and enjoyed by many, the precept meant that Havering Council Tax payers contributed some £16m towards the Games with little or no quantifiable benefit to our residents.

 

Our council faces significant financial pressures, such as Social Care, demographic growth and Housing which is made even more challenging when set against substantial reductions in local government funding.

 

As such, this Council calls upon the Mayor of London to honour the original agreement which ring-fenced the £20 precept for the Olympic and Paralympic Games and as the financial obligation has been met, the remaining £8 should be returned to Council Tax payers in 2017/18 to help fund council services to our residents.

 

 

 

 

Amendment by the Independent Residents’ Group

 

(Proposed amended wording shown in bold for clarity).

 

Under an agreement between the GLA and the government of the time, from 2006/07 Council Tax payers across London were required to contribute £625m towards the cost of the 2012 Olympic and Paralympic Games. This was equivalent to an annual charge of £20 per household (Band D) which was collected by the GLA via an Olympic Precept included in council tax bills. In 2016/17 the final instalment of the £625m was paid and Council Tax payers saw the £20 precept reduce to £8 accordingly.

 

As the full £625m had been paid off, the expectation was that the remaining £8 would be returned to Council Tax payers in 2017/18. However, the draft 2017/18 GLA budget does not propose to return this sum.

 

Furthermore, while the Games were a great success and enjoyed by many, the precept meant that Havering Council Tax payers contributed some £16m towards the Games with little or no quantifiable benefit to our residents.

 

Our council faces significant financial pressures, such as Social Care, demographic growth and Housing which is made even more challenging when set against substantial reductions in local government funding.

 

As such, this Council calls on the Executive to ascertain whether withholding the return of this overpayment is lawful and if not instruct the legal department to seek the return of said moniesand calls on the Mayor of London to honour the original agreement which ring-fenced the £20 precept for the Olympic and Paralympic Games and as the financial obligation has been met, the remaining £8 should be returned to Council Tax payers in 2017/18 to help fund council services to our residents.

 

Following debate, the amendment by the Independent Residents’ Group was NOT CARRIED by 41 votes to 8 (see division 8) and the motion on behalf of the Joint Administration was AGREED as the substantive motion, without division.

 

RESOLVED:

 

Under an agreement between the GLA and the government of the time, from 2006/07 Council Tax payers across London were required to contribute £625m towards the cost of the 2012 Olympic and Paralympic Games. This was equivalent to an annual charge of £20 per household (Band D) which was collected by the GLA via an Olympic Precept included in council tax bills. In 2016/17 the final instalment of the £625m was paid and Council Tax payers saw the £20 precept reduce to £8 accordingly.

 

As the full £625m had been paid off, the expectation was that the remaining £8 would be returned to Council Tax payers in 2017/18. However, the draft 2017/18 GLA budget does not propose to return this sum.

 

Furthermore, while the Games were a great success and enjoyed by many, the precept meant that Havering Council Tax payers contributed some £16m towards the Games with little or no quantifiable benefit to our residents.

 

Our council faces significant financial pressures, such as Social Care, demographic growth and Housing which is made even more challenging when set against substantial reductions in local government funding.

 

As such, this Council calls upon the Mayor of London to honour the original agreement which ring-fenced the £20 precept for the Olympic and Paralympic Games and as the financial obligation has been met, the remaining £8 should be returned to Council Tax payers in 2017/18 to help fund council services to our residents.