London Daily

Focus on the big picture.
Friday, Nov 06, 2026

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
High Court Rules in Favor of Comprehensive Transparency Review Regarding Government Artificial Intelligence Procurement Contracts
Home Office Expands Digital Border Security and Electronic Travel Authorization Systems Across International Arrivals
Scottish Government Confirms Accelerated Investment in Offshore Renewable Energy Infrastructure Across North Sea Corridors
Department for Environment Food and Rural Affairs Implements Stricter Water Company Oversight and Environmental Penalties
National Health Service England Unveils Emergency Winter Resilience Package to Tackle Acute Accident and Emergency Backlogs
Office for National Statistics Reports Gross Domestic Product Growth Stagnated at Zero Point One Percent in Third Quarter
Chancellor of the Exchequer Outlines Comprehensive Fiscal Strategy to Stabilize National Borrowing and Public Spending
Bank of England Maintains Base Interest Rate at Five Percent Amid Persistent Service Sector Inflation Pressures
Office for National Statistics Reports Stable Consumer Confidence and Modest Retail Growth Heading into Winter
Welsh Government Launches Strategic Regional Transport Initiative to Modernize Rail Links Across South Wales
Home Office Expands Digital Border Security Controls and Electronic Travel Authorisations for Inbound Visitors
Scottish Government Announces Emergency Housing Investment Package to Tackle Urban Homelessness Crises
Northern Ireland Executive Reaches Bipartisan Consensus on Public Sector Pay Reform and Budget Allocations
Automotive Manufacturing Sector in the West Midlands Welcomes New Electric Vehicle Supply Chain Investments
Department for Energy Security and Net Zero Approves Offshore Wind Expansion in the North Sea
HM Treasury Finalizes Regulatory Framework for Stablecoins and Digital Asset Markets in London
National Health Service Unveils Comprehensive Digital Integration Strategy to Slash Hospital Waiting Lists
Bank of England Leaves Interest Rates Unchanged Amid Persistent Wage Growth and Inflationary Pressures
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
×