Westminster residents could stop paying council tax for town hall services in five years' time if the council continues to make efficiency savings and generate income from private-sector deals, its deputy leader has said.

Kit Malthouse, who speaks for the Tory-run council on finance issues, told its 50 top managers there was no reason why Westminster should not aspire to charging a zero council tax within 5-8 years if trends in savings and revenue-raising measures continued. However, residents would still have to pay for police and fire services and a precept from the mayor of London.