London Daily

Focus on the big picture.
Wednesday, Feb 25, 2026

Sadiq Khan announces biggest hike in council tax, taking bills to £400

Sadiq Khan announces biggest hike in council tax, taking bills to £400

Mayor blames lack of government funding for need to increase bills by 8.8 per cent

Sadiq Khan has announced plans to increase council tax by the biggest amount since he became Mayor.

On Wednesday, he proposed increasing his share of bills by an average of £31.93 a year from next April, meaning the average London household will pay almost £400 a year to City Hall.

The increase includes an extra £20 announced by Mr Khan last week to help restore the finances of Transport for London.

His proposal for 2022/23 surpasses his previous record £31.59 increase in benchmark Band D bills that he imposed for the 2021/22 financial year.

However, the percentage increase being proposed – 8.8 per cent – is lower than the 9.5 per cent agreed for the current year.

The £31.93 increase consists of £20 for transport, £10 for policing and crime and £1.93 for the London Fire Brigade. It means Londoners will pay an extra £108 million to the Greater London Authority in council tax.

The total annual bill paid by many London households will be around £2,000 once their borough council adds its amount. Boroughs are likely to increase their bills by around five per cent.

Mr Khan said he had been forced to hike council tax bills because of a lack of government support for London.

But he faced a backlash last week when he said council tax bills would be increased to raise funds for TfL - a day after depriving TfL of £60m to £70m a year in income as a result of not requiring drivers to pay the congestion charge after 6pm from next February.

Last week the Department for Transport said TfL’s current bailout – to replace the reduction in fares income caused by the pandemic – would continue until February but no long-term agreement on funding has been agreed.

Mr Khan said: “The pandemic is continuing to have a serious impact on London’s finances and the Government is still refusing to properly fund our public services, particularly the Met police, Transport for London and the London Fire Brigade.

“Raising council tax by £2.66 per month is not something I want to do, but the Government is leaving us with no choice if we are to help prevent the collapse of TfL and ensure our police officers and firefighters have the resources they need.”

Susan Hall, leader of the GLA Conservatives, said: "Londoners can’t afford Sadiq Khan’s endless council tax hikes. Far too many people already feel squeezed by the cost of living in London. The mayor is only making the situation worse.”

Caroline Pidgeon, leader of the Lib-Dem group on the London Assembly, said: “While painful, this rise seems almost inevitable in the circumstances. When public services are so strapped for cash the mayor is using one of the few tools he has, that of raising council tax.

“However the reality is this is no way to ensure long term funding of the police, fire and especially transport services in the capital.

“The mayor needs to be looking at things like smart road user charging and the Government needs to start treating regional government seriously to prevent the starving of our vital frontline services. That must mean London being allowed to raise revenue through other forms of tax other than just regressive council tax.”

Ken Livingstone holds the record for the biggest increase in the Greater London Authority’s share of council tax bills, both in real terms and percentage-wise. In 2003/4, he increased his share of the precept by £50.52 ( a 29.1 per cent annual increase).

Under Mr Livingstone - who was first to be elected mayor of London - the precept rose from £123 in 2000 to £310 in 2008.


His successor Boris Johnson froze the City Hall precept in his first four-year term and reduced it annually in his second term, leaving it at £276 when Mr Khan became mayor in May 2016.

Mr Khan increased it by £4.02 in 2017/18, taking it to £280.02. In 2018/19 it rose £14.20 to £294.22.

This was followed by an increase of £26.29 in 19/20 (taking the total to £320.51), £11.56 in 2020/21 (£332.07), £31.59 in 21/22 (£363.66) and now the proposed £31.9 (which would mean a total precept of £395.59 in 2022/3).

Mr Khan’s draft budget for 2022/23, which is out for consultation, is due to be considered by the London Assembly on January 26, with the final proposals to be agreed on February 24.

Newsletter

Related Articles

0:00
0:00
Close
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
UK, Australia, Canada and New Zealand Escalate Sanctions on Russia as Ukraine War Marks Four Years
I Gave Andrew a Nude Massage Inside Buckingham Palace
UK Economy Faces Acute Strain as Trump’s Global Tariff Reshapes Trade Landscape
UK Signals Retaliation Is Possible as New US Tariff Policy Threatens Trade Stability
British Police Arrest Former Ambassador Peter Mandelson in Epstein-Related Misconduct Probe
Australia Officially Supports Proposal to Remove Andrew Mountbatten-Windsor from Royal Succession
Victorian Premier Jacinta Allan remains silent on ISIS brides' resettlement plans in Melbourne
Former UK Ambassador Peter Mandelson Arrested in Connection with Jeffrey Epstein
Jacob Rees Mogg afraid to talk about Peter Mandelson arrest on “suspicion of misconduct in a public office” (Pedophilia, corruption, etc.)
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
President Trump warns countries against abandoning recent trade deals with the US
Diverging Polls Show Mixed Signals on UK Economic Revival as Confidence Remains Fragile
Spotify Expands AI-Driven ‘Prompted Playlists’ Feature to the United Kingdom and Other Markets
Greens and Reform UK Surge in Manchester By-Election, Threatening Labour’s Historic Stronghold
UK Businesses Push for Closer European Trade Links Amid Renewed US Tariff Uncertainty
Deloitte Global Overhaul Sparks Leadership Contest in the United Kingdom
University of Kentucky and Microsoft to Showcase Campus-Wide AI Innovation
UK Food System Faces Acute Vulnerability to Shocks, Experts Warn
Reform UK’s Proposed ICE-Style Deportation Scheme Triggers Sharp Backlash
×