London Daily

Focus on the big picture.
Thursday, Feb 05, 2026

London council tax hike shock as Sadiq Khan set to add nearly £40 to bills

London council tax hike shock as Sadiq Khan set to add nearly £40 to bills

EXCLUSIVE: The rise would mean typical households would pay just over £434 to the Greater London Authority
Sadiq Khan is set to hike his share of council tax bills by the biggest amount since he became mayor, it can be revealed.

The mayor is expected to add £38.55 to average bills - a rise of 9.7 per cent in his “precept” - after the Government increased the amount that local authorities can charge residents.

This would mean that typical households would pay just over £434 to the Greater London Authority, mostly to help fund the Met police and London fire brigade, in addition to the amount they pay to their borough council for local services.

The rise would be a fresh blow to Londoners who are already struggling amid the cost of living crisis, with high inflation, surging energy bill costs and increasing prices at supermarkets.

It would be the second successive year in which Mr Khan has broken his own record for council tax rises.

Last year, he increased his share of bills by 8.8 per cent, adding £31.93 for a household paying the benchmark Band D rate.

The latest increase, which is due to come into force from April, would mean that total annual bills will move closer to £2,000 for an increasing number of London households.

The City Hall precept was £276 when Mr Khan became mayor in 2016.

Peter Fortune, deputy leader of the GLA Conservatives, said: “Londoners will be deeply concerned about the rising cost of Khan this year, as once again he hits people with extortionate tax rises.

“Sadiq Khan will have increased council tax by 57 per cent since he was elected, an eye-watering and unaffordable cost of living burden for so many people.”

Johnny Thalassites, Tory lead member for finance at Kensington and Chelsea council, said: “I understand the pressures we are all under in London but believe the increase is much too high given the current challenges our residents and Londoners in general are facing.”

Three boroughs – Kingston, Harrow and Richmond – already charge in excess of £2,000 for Band D bills when the mayor’s precept is included.

Last month Mr Khan said his “working assumption” was for a £27.89 increase.

But just before Christmas, the Government said he could raise an additional £15 – rather than the £5.50 he planned – for the police, and increase the remainder of his precept by 2.99 per cent, rather than 1.99 per cent.

The increase also includes a further £20 for Transport for London – the second of three annual £20 levies – to help fund the cost of free travel for teenagers and people over 60.

Mr Khan is due to confirm his precise council tax demand for the 2023/24 financial year in the next fortnight.

Asked by the Standard how he could justify a near 10 per cent increase during a cost of living crisis, he said: “I have got to be honest with Londoners.

“Unless we increase the precept to the maximum the Government is telling us to do so, we will have less money for police, less for the fire service and we will have to remove free travel for children and free travel for over 60s.”

He described council tax as “regressive, outdated and not fit for purpose” and “one of the unfairest ways to raise revenues”.

But he said the GLA would lose Government funding over the long term if he failed to increase council tax bills by the maximum permitted.

“What this Government has done is combine austerity with cost shunting,” he said. “They are saying, not just to regional government like me, but to councils: ‘You have got to replenish some of the money we are cutting by raising council tax.’

“If we don’t increase council tax by the amount the Government has given us discretion to do so, the Government punish us in two ways. They reduce the amount of revenue we receive next year… and it also reduces the [funding] base we have in subsequent years.

“That is why you are going to find the vast majority of councils and metro mayors having to increase the precept by amount allowed. I have not made my decision yet but that is the reality of the last few years.”

Mr Khan’s spending priorities included tackling violent crime and violence against women and girls, and helping the post-pandemic recovery.

He has been legally summonsed to appear before the London Assembly on February 21 to answer further questions on his budget after a “polite” request to reappear was declined.

Ken Livingstone holds the record for the biggest mayoral council tax rise – the £50.52, or 29 per cent, that he imposed in 2003.
Newsletter

Related Articles

0:00
0:00
Close
Epstein Case Documents Reignite Global Scrutiny of Political and Business Elites
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
UK Royal Family Faces Intensifying Strain as Epstein-Linked Revelations Rock the Institution
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
Tech Mega-Donors Power Trump-Aligned Fundraising Surge to $429 Million Ahead of 2026 Midterms
UK Pharma Watchdog Rules Sanofi Breached Industry Code With RSV Vaccine Claims Against Pfizer
Melania Documentary Opens Modestly in UK with Mixed Global Box Office Performance
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
×