London Boroughs to Increase Council Tax Amid Rising Financial Struggles

London council tax hikes are expected this April as boroughs across the city grapple with years of public spending cuts and inflation. While most councils are expected to raise taxes by around 5%, some are proposing much steeper increases to manage mounting financial pressures. The London borough of Newham has announced the sharpest rise so far, with a 9.99% increase after receiving special permission from the government to avoid bankruptcy.

For the first time, several boroughs, including Greenwich, Hounslow, Merton, and Islington, are likely to see average council tax bills exceed £2,000. In a bid to boost revenues, boroughs such as Sutton are also revising their rules on council tax reductions and exemptions. From April, every household in Sutton will need to pay at least 5% of their council tax bill, and in Richmond, 355 households are set to lose their exemption status.

Meanwhile, Westminster and Wandsworth—known for having some of the lowest council taxes in London—plan to double their charges for second homes. Adding to the burden, all boroughs will experience a 4% rise in the portion of tax allocated to the Mayor of London, which has now increased to £18.98, while the City of London’s contribution has risen by 3% to £171.25.

Confirmed London Council Tax Increases So Far:

• Greenwich: 4.99%
• Tower Hamlets: 4.99%
• Islington: 4.99%
• Newham: 9.99%

Boroughs Yet to Announce Increases:

City of Westminster, Kensington and Chelsea, Hammersmith and Fulham, Wandsworth, Lambeth, Southwark, Hackney, Camden, Brent, Ealing, Hounslow, Richmond upon Thames, Kingston upon Thames, Merton, Sutton, Croydon, Bromley, Lewisham, Bexley, Havering, Barking and Dagenham, Redbridge, Waltham Forest, Haringey, Enfield, Barnet, Harrow, Hillingdon.

The new rates will come into effect as councils try to manage financial shortfalls while supporting vital services for residents. While these increases aim to address significant funding gaps, they also highlight the growing strain on local governments across the capital.

For more updates on London’s council tax changes and their impact, visit EyeOnLondon.

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