London boroughs are set to raise council tax bills, with some seeing increases of nearly 10% as budgets tighten and costs rise.
London: The 33 borough councils in London are gearing up to announce their council tax hikes starting in April. Most are looking at a rise close to five percent, based on early budget plans. Some boroughs, like Greenwich, Islington, and Tower Hamlets, have already hinted at these increases.
Newham is going for a hefty 9.99 percent jump to avoid financial disaster. Meanwhile, Mayor Sadiq Khan wants to raise his portion of the bills by four percent to boost funding for the Metropolitan police.
This means the mayor’s share will go from £471.40 to £490.38 for the standard band D bills, which is an increase of about £18.98. With these changes, many households could end up paying over £2,000 a year, which breaks down to around £200 a month since bills are usually spread over ten months.
Currently, 15 boroughs already charge more than £2,000 annually for band D bills. These include places like Barking and Dagenham, Bexley, and Camden. There’s a growing worry that the financial struggles of many councils might lead them to target the most vulnerable Londoners, including carers and lone parents, for council tax payments.
Greenwich has stated it had “no choice” but to raise its share by 4.99 percent, which adds about £72.28 a year to the band D bill. The leader of Greenwich, Anthony Okereke, pointed out that this budget reflects the tough financial situation caused by years of underfunding from the previous government.
On a brighter note, he mentioned that they’ve received a better financial settlement this year, which should help improve services. Islington is also looking at a similar increase of £1.39 per week, bringing its total to around £2,011 when the mayor’s precept is included.
Tower Hamlets’ mayor, Lutfur Rahman, said they’re leading the way by providing free school meals and grants for school uniforms to help families during the cost-of-living crisis. Some councils are even considering doubling the charges for second homes.
Each council’s share of the bills is expected to include a 2.99 percent increase for council services and a two percent rise for adult social care, which adds up to a practical 4.99 percent increase overall.
Boroughs like Greenwich, Hounslow, Merton, and Islington are likely to cross the £2,000 mark for average bills for the first time. This is just a sneak peek at what’s coming for council tax bills in London, and updates will roll in as boroughs finalize their amounts in upcoming council meetings.
