London Daily

Focus on the big picture.
Sunday, May 11, 2025

Labour freeze on council tax would include Mayor’s share

Labour freeze on council tax would include Mayor’s share

Sadiq Khan would be banned from raising City Hall’s share of the council tax this year under a Labour pledge
The Mayor would be banned from raising his share of Londoners’ council tax this year under a Labour pledge announced on Thursday.

Sir Keir Starmer promised to freeze council tax for everyone as he launched the party’s local election campaign in Swindon.

Sadiq Khan hiked his share of the bill by the biggest amount since he became Mayor this year, with an almost 10 per cent increase being added to payments from next month.

The City Hall levy, used to fund the Met Police and Fire Brigade, will account for £434.14 of the average London bill from April - up £38.55 on last year.

It comes as thousands more Londoners were set to see their annual payments increase to more than £2,000 a year with local authorities imposing an average 5 per cent rise across the capital.

Residents in bankrupt Croydon will see a 15 per cent increase in their bills added by their town hall as officials desperately try to balance the borough’s finances.

But Sir Keir vowed that Labour would use a windfall tax on oil and gas giants to freeze council tax if in his party were in power.

A Labour spokesman confirmed it would also apply to City Hall’s levy.

Sir Keir said: “There is a choice on tax. A Tory choice – taxes up for working people, tax cuts for the 1 per cent.

“Or a Labour choice. Where we cut business rates to save our high streets and where, if there was a Labour Government, you could take that council tax rise you just got and rip it up.”

The Labour party published analysis which showed bills for average Band D homes in Labour areas are £72 lower than in Tory ones.

But Conservatives hit back with their own figures that show Tory-run town halls facing election in May charge £80 a year less council tax than Labour for the standard home.

Cabinet minister Grant Shapps said he would take Labour’s pledge “with a pinch of salt”.

“I can’t imagine how they can even go out and claim that they’d cut council tax given that Labour councils always seem to charge more than Conservative ones,” the Energy Security Secretary told TalkTV.

It comes as Shadow Chancellor Rachel Reeves indicated Labour does not plan to increase capital gains tax, despite deputy leader Angela Rayner suggesting rates were too low.

Prime Minister Rishi Sunak last week released a summary of his tax returns, which showed that his tax rate was about 22 per cent because most of his earnings came from capital gains which are taxed at a lower rate than income.

Sir Keir paid a far greater proportion of his earnings in tax than Mr Sunak - with an effective tax rate of 33 per cent - despite the PM making 10 times more.

It prompted Ms Rayner to hit out at a system “in which the Prime Minister pays a far lower tax rate than working people”.

But on Thursday, Ms Reeves argued against raising the tax.

“I don’t have any plans to increase capital gains tax,” she told BBC Radio 4’s Today programme.

“There are people who have built up their own businesses who maybe at retirement want to sell that business.

“They may not have had huge income through their life if they’ve reinvested in their business, but this is their retirement pot of money.

“And we also have said we want Britain to be the best place to start and grow a business.”
Newsletter

Related Articles

0:00
0:00
Close
Trump fires director of U.S. Copyright Office, sources say
Retired British police officer arrested over ‘thought crime’ tweet
Cardinal Robert Prevost Elected as Pope Leo XIV, Marking a Historic Papacy
Newark Mayor Ras Baraka Arrested at ICE Facility Amid Congressional Visit
India-Pakistan conflict may be first test for Chinese military tech
Bill Gates Announces Plan to Wind Down Philanthropic Foundation and Disperse Wealth
Historic Papal Conclave Set to Commence in Rome
Huge Copper, Gold, and Silver Discovery in Argentina and Chile — But the Profits Go Abroad
Prince Harry is pleading for reconciliation — but the royals are just as sick of his victimhood as everyone else
The Road to Freedom: She Protested Putin, Escaped House Arrest, and Survived a 2,800-Kilometer Journey
OpenAI's Flip-Flop: No Longer Going Commercial, Back to Nonprofit, After Musk Lawsuit and Backlash
“Trump Supporter” Aims to Bring a MAGA-Style Shift to Romania
First From China: Zhao Xintong Wins the Snooker World Championship
Nvidia Faces Billion-Dollar Losses – Warns: China Is on Its Way to Becoming an AI Superpower
Trump Rules Out Third Term, Names JD Vance and Marco Rubio as Potential Successors
Mexico Says ‘No’ to U.S. Troops: President Sheinbaum Rejects Trump’s Offer to Fight Cartels
Nigel Farage’s Reform UK Storms the Map, Wrecking the Two-Party Monopoly
DOGE: Reimagining Government Operations with AI
Common Sense Returns to Britain's Legal System: UK Supreme Court Declares a Woman Is… a Woman
Beijing Says U.S. Is ‘Reaching Out’ for Tariff Talks Amid Soaring Trade Tensions
U.K. Court Rejects Prince Harry’s Final Appeal Over Police Security
Prince Harry’s Heartfelt Outburst Rocks the Royal Family
Trump Shares AI-Generated Image of Himself as… Pope, Prompting Outrage Reaction
Transgender Swimmer Secures Five Gold Medals at U.S. Masters Championship
Prince Harry: “I Want Reconciliation with My Family”
Germany's Alternative für Deutschland (AfD) party has now been officially labeled “right-wing extremist” by the federal office for the so-called “protection of the constitution.”
Amazon Launches Satellite Internet Service Amidst Competition with SpaceX
Transformative Changes in Women's Wrestling: The Rise of WWE Superstars
The Rush to the White Gold: Global Investment Surge in Natural Hydrogen Exploration
This is a day in Spain without electricity and internet
Reform UK Surprises in British Elections, Challenging Traditional Two-Party System
180-Year-Old Christian University in South Carolina Announces Closure Due to Unmet $6 Million Fundraising Goal
Brazilian Woman Jailed for Fourteen Years for Writing “You Lost, Idiot” on Statue During Protest
Trump Administration Removes National Security Adviser Mike Waltz Amid Signal Chat Controversy
Dutch Politician Eva Vlaardingerbroek Receives Spyware Threat Alert from Apple
Paramount Board Considers Settlement in Trump’s $20 Billion Lawsuit Over "60 Minutes" Interview
U.S. Economy Shrink in Trump’s First Quarter as Tariff Policy Raises Questions
Deadline Looms for RTS Meter Replacement: Hundreds of Thousands at Risk of Heating Disruption
Sweden Grapples with Deadly Gun Violence: Suspect Arrested After Three Young Men Killed in Uppsala Hair Salon
Walz Reveals Why Harris Chose Him as Her Running Mate and Reflects on Democratic Losses
Spain Restores Power After Unprecedented Nationwide Blackout
Carney Secures Liberal Mandate in Canada’s Federal Election
Death Penalty Sought as Luigi Manion Pleads Not Guilty in CEO Murder Case
President Trump contacts Jeff Bezos after reports of Amazon considering listing tariff surcharges; company clarifies no such plan for main platform
Spain and Portugal Recover from Massive Blackout
Liverpool Clinches Record-Equalling 20th English League Title Under Arne Slot
Singapore Politicians Warn Against Foreign Interference in Election
Driver Ploughs into Vancouver Festival Crowd, Killing Nine
Depression, Fear of Defamation, and a Tragic End: New Details on Virginia Giuffre’s Suicide
“Sharia for UK, Allah Akbar!”
×