A Tory council has announced plans to impose the lowest increase announced so far in London on its share of council tax bills. Kensington and Chelsea council said it would increase bills by four per cent from April – a point lower than the five per cent hike that most other boroughs are expected to make. In addition, the council will offer a one-off £50 payment to more than 15,000 low-income residents to help with cost of living pressures.
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The four per cent increase – two per cent for general council services and two per cent for adult social care – is likely to be one of the lowest rises in the country. The Government has given councils permission to increase bills by five per cent without having to hold a referendum, except in a handful of cases such as Newham and Windsor and Maidenhead, which are in acute financial crisis. Newham has been given permission by Deputy Prime Minister Angela Rayner to increase its share of bills by nine per cent.
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Other London boroughs that have already announced a five per cent rise include Greenwich, Havering, Islington, Hammersmith and Fulham, Haringey and Tower Hamlets. Benchmark band D bills in Kensington and Chelsea are expected rise from £1,508.98 to a total of £1,569.46 once London mayor Sadiq Khan’s “precept” is added. The borough increase is £41.50 – taking the council’s amount to £1,079.08. The mayor levies £490.38 on all band-D homes across London.
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Kensington and Chelsea will also retain its council tax reduction scheme to help low-income residents with council tax bills. About 13,000 residents qualify for discounts. Council leader Elizabeth Campbell said: “Years of sensible management and focusing on what residents want means we can keep council tax low again – with the lowest proposed increase in London. “Like other councils we have substantial budget pressures, with a £40 million gap over the next four years, but we will look at every option before raising taxes. Next year we will save £16 million, mainly through innovation and back office efficiency.
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