15 London boroughs are increasing council tax – and thousands of residents will soon have to pay for the first time

Thanks to years of cutbacks in public spending and unprecedented inflation, London’s borough councils are facing a cash crisis. Soon, for the first time thousands of London’s poorest residents will have to pay council tax, while 15 boroughs will increase council tax for all residents. 

At the moment, many of the lowest earning working-age Londoners and pensioners are exempt from council tax. But this is about to change for nearly half of London’s boroughs, with 15 out of 33 looking to make changes and earn some desperately needed extra cash. 

Councils are concerned their funds are going to be drained by the upcoming increase to the London living wage (thanks to inflation), and a 10 percent rise in the cost of Freedom Passes – free travel passes for older Londoners. There are also soaring costs in temporary accommodation, and concerns about the upcoming increase in National Insurance that employers will have to pay. 

RECOMMENDED: How much council tax is increasing in every London borough.

In April, the majority of London councils will hike tax by the maximum allowed 4.99 percent. However, one council wants to increase it by double this: Newham council has asked the government for permission to raise council tax by 10 percent to avoid bankruptcy. 

Councils are also having to make the tough decision to change their rules around council tax reductions and exemptions, the Standard reported. In Sutton, from April every household will have to pay at least five percent of the council tax bill. In Richmond, it’s expected that 355 households will be ‘adversely affected’ by no longer being exempt from council tax. 

The poorest residents in Camden, Hammersmith and Fulham and Tower Hamlets will continue paying zero council tax. 

Read about all the 15 boroughs increasing council tax, including how much it will cost, here. 

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