Local Government Minister John Healy announced on Thursday 6th December an average 3.6% grant increase for local authorities across England and a whopping 6.3% increase for Luton. This inflation busting increase for Luton is £5M more than last year’s government grant and gives Luton Council more money for local services in 2008-2009 than the Council has ever had before.

“With the £5.5M left in the kitty by the careful financial management of the last Liberal Democrat administration at the Town Hall and a £2.6M windfall due to high interest rates there’s no reason why there should be any increase in Council Tax at all,” says Liberal Democrat leader of the opposition, David Franks.

“This £13M boost to Council finances means there’s now no reason why Labour should not deliver on all their election promises and the ruling Labour councillors will have to work very hard indeed to justify any Council Tax increase at all.”