Council tax bills: 29 boroughs increase bills by 4.99%

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March 18, 2025
3 min read

Council tax bills: 29 boroughs increase bills by 4.99%

Londoners will soon see a sharp rise in their council tax bills, as 29 of the capital’s local authorities have confirmed a near-maximum increase of 4.99% from April 2025. Barnet Council has opted for a 4.98% rise, while Kensington and Chelsea residents will see a 4% hike. Meanwhile, Wandsworth, historically known for its low council tax, will implement a smaller 2% rise. However, Newham Council has been granted special permission by central government to raise its rates by a staggering 8.99% due to the severe financial strain caused by housing and temporary accommodation costs.

Under current regulations, local councils in England can increase council tax bills by up to 4.99% without requiring a referendum. This cap, which includes a 2% allocation for adult social care, has remained unchanged for three years. While councils that wish to exceed this limit must usually seek approval from residents, the government can make exceptions in cases of extreme financial hardship. Seven London boroughs will also receive Exceptional Financial Support loans totalling over £418m for the next financial year to help balance their budgets.

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The funding crisis facing London’s councils has been described as unsustainable. According to London Councils, an advocacy group representing the capital’s local authorities, boroughs are now operating with 28% less funding per resident compared to 2010. The organisation is calling for a full restoration of council funding to 2010 levels by 2028-29, which would require annual real-terms increases of 4%. They argue that the reliance on emergency borrowing measures such as Exceptional Financial Support is pushing local authorities deeper into debt, making long-term financial stability impossible.

For more information, visit UK Government Council Tax Guide.

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