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Six wealthy councils in south will get power to hike council tax: Report
Six London councils can raise council tax by over 5% in 2026 and 2027 without a referendum after funding cuts shift resources to deprived areas, says Labour.
- The government has granted six London-area councils power to raise council tax above 5% for 2026 and 2027 without local referendums, including Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, City of London, and Windsor and Maidenhead.
- Ministers say the funding review aims to rebalance cash towards deprived areas from next year, while Conservatives accuse them of wanting to 'punish' low-tax councils, and Labour argues the six areas were hit by austerity cuts and outdated rules.
- Historically, referendums to exceed 5% have never succeeded, though councils in precarious financial positions have gained special permission in recent years, with last month's rule tweak easing impacts for inner London councils.
- Sir James Cleverly warned councils losing out will cut services or raise tax, with residents in Birmingham facing rises over 17% and Croydon hiking rates 15% in 2023.
- Analysts say urban and deprived areas will face the biggest shifts as the new funding system, phased in over three years from 2026, shifts more support to deprived councils.
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Six councils granted power to raise council tax without needing to consult residents
The Institute for Fiscal Studies (IFS) has estimated that Wandsworth and Westminster councils would need to hike council tax by as much as 75 per cent to balance the books in the wake of government reforms
·London, United Kingdom
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Rich London Boroughs Face Big Tax Hikes on Top of ‘Mansion’ Levy
Six wealthy areas in and around London are set for annual tax hikes in excess of 5% in the coming years, after the Labour government lifted a cap on council levies to make up for its efforts to shift funds to poorer communities.
·United States
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Coverage Details
Total News Sources6
Leaning Left2Leaning Right0Center2Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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