Harrow Borough Council has denied rumours that it is to raise its council tax bill by two per cent from April 2013.

The council has responded to Conservative claims that council tax is to go up by two per cent, saying that it has not yet made any decision about the amount it will levy next year.

Harrow Council’s portfolio holder for finance, Cllr Sachin Shah, said: “This rumour is totally unfounded.

“Until Harrow Council finds out how much money it will get from central Government on December 19 we are unable to make any decision about council tax.

“This is almost a month later than we got our grant settlement in the past, which is disappointing and makes it very difficult for us to plan ahead.

“However, the council is facing its most challenging financial situation in decades.

“The council has already identified cuts to the council’s controllable budget of £51m since 2010 and expected to find a further £11m over the next two years.

“This £11m has grown to £24m due to pressures outside the council’s control.

“Since publishing our draft budget, we have had even more bad news, with the government announcing more cuts to local government.”

Cllr Shah’s comments come after the leader of the Conservative group, Cllr Susan Hall, released an official statement expressing her disgust at the rumoured council tax increases of two per cent.

She said: “The leader of the council has already admitted there will be cuts ‘to the bone’ and that Labour are even ‘nipping into the bone marrow’.

“In addition to these cuts, Labour plan to increase council tax by two per cent at a time when Harrow residents are still struggling financially and when it’s likely other councils across London are planning freezes.

“These service cuts and council tax increase are consequences of Labour’s poor financial management and their inability to make big decisions over the last two and a half years.

“Additionally, despite Harrow already having the fourth-highest council tax in London, Labour are refusing the offer of additional funding from the Conservative-led government, which councils can use to help them freeze council tax.

“Labour are also putting an additional burden on some of Harrow’s least well-off and, in some cases, most vulnerable residents – by forcing all working-age recipients of council tax benefit to pay council tax.

“Labour said in their manifesto ‘society should be judged by how it treats its most vulnerable’, yet from this decision it’s clear Labour are not holding themselves to the same standard.

“As we were not given the opportunity to see the budget before it was released we will now be going through it in detail, as we’re very concerned at the severity of cuts Labour look set to inflict on Harrow’s services.”