Both Sir Sadiq Khan and Angela Rayner have confirmed rises to council tax. (Image Credits: AP)
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The London Borough of Newham has been given special permission to raise council tax by the government after they applied for special financial support.
The Secretary of State for Housing, Angela Rayner, acknowledged that there are a ‘large number of councils in financial difficulty,’ in a letter handed to local authorities yesterday. This was reflected in the government’s decision to allow Newham to hike council tax by 8.99% for the next financial year.
‘We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers,’ added Rayner.
The news comes just as London boroughs begin to unveil their planned council tax measures for 2025.
Most boroughs will be raising council tax by 4.99% – in line with the standard threshold that was established under the previous government. Labour confirmed that this cap would not be raised this year, meaning these announcements were part of exceptional emergency measures.
The Greater London Authority precept, which is the ‘cut’ taken by the Mayor, will also be raised. Citing shortfalls in Metropolitan Police and London Fire Brigade funding, City Hall confirmed last month it would be recommending a 4% increase in the levy across all boroughs.
All London council taxpayers will be affected from April
The London Borough of Islington were the first to announce their budget for the next tax year, confirming that they had taken the ‘difficult decision’ to raise council tax as part of measures being taken to balance the books, including their requirement to make over £14m of savings.
Any rises in council tax will affect all households, including those classified as Bands A and B, the lowest in the rankings of how the tax is calculated. Band D, which makes up the majority of homes in London, will see residents pay £72.28 per year more each.
The Royal Borough of Windsor and Maidenhead – a key area in London’s commuter belt – will also raise council tax by 8.99%. The borough had requested dispensation for a hike up to 25%, but this was declined by the government.
This comes after the Borough announced they were in over £230m of debt in their budget, published in December.
Further confirmations of London borough council tax hikes are expected this coming fortnight, as full council and budget review meetings take place. Any announced rises in council tax will come into immediate effect, with the tax year restarting in April.
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Standfirst
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HeadlineNewham council given permission to raise council tax above national threshold
Short HeadlineLondon borough given permission to raise council tax to 9%
StandfirstThe 'emergency measure' was announced in Parliament on Monday afternoon
The London Borough of Newham has been given special permission to raise council tax by the government after they applied for special financial support.
The Secretary of State for Housing, Angela Rayner, acknowledged that there are a ‘large number of councils in financial difficulty,’ in a letter handed to local authorities yesterday. This was reflected in the government’s decision to allow Newham to hike council tax by 8.99% for the next financial year.
‘We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers,’ added Rayner.
The news comes just as London boroughs begin to unveil their planned council tax measures for 2025.
Most boroughs will be raising council tax by 4.99% – in line with the standard threshold that was established under the previous government. Labour confirmed that this cap would not be raised this year, meaning these announcements were part of exceptional emergency measures.
The Greater London Authority precept, which is the ‘cut’ taken by the Mayor, will also be raised. Citing shortfalls in Metropolitan Police and London Fire Brigade funding, City Hall confirmed last month it would be recommending a 4% increase in the levy across all boroughs.
All London council taxpayers will be affected from April
The London Borough of Islington were the first to announce their budget for the next tax year, confirming that they had taken the ‘difficult decision’ to raise council tax as part of measures being taken to balance the books, including their requirement to make over £14m of savings.
Any rises in council tax will affect all households, including those classified as Bands A and B, the lowest in the rankings of how the tax is calculated. Band D, which makes up the majority of homes in London, will see residents pay £72.28 per year more each.
The Royal Borough of Windsor and Maidenhead – a key area in London’s commuter belt – will also raise council tax by 8.99%. The borough had requested dispensation for a hike up to 25%, but this was declined by the government.
This comes after the Borough announced they were in over £230m of debt in their budget, published in December.
Further confirmations of London borough council tax hikes are expected this coming fortnight, as full council and budget review meetings take place. Any announced rises in council tax will come into immediate effect, with the tax year restarting in April.
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