London Daily

Focus on the big picture.
Monday, Sep 28, 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
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
Conservative Party Rejects New Taxes to Fund UK Social Care Reforms
Labour Government Signals Intent to Ease Residency Restrictions for Foreign Care Workers
Prime Minister Andy Burnham and Norwegian Prime Minister Jonas Støre Meet to Strengthen North Atlantic Defense
UK Government Plans to Revive Equity Loan Scheme to Assist First-Time Home Buyers
Prime Minister Andy Burnham Pledges Radical Reform for UK Utilities and Social Care
UK Treasury Prepares Difficult Autumn Budget Amid High Debt and Energy Volatility
Civil Aviation Authority Launches Review of Air Traffic Systems Following Digital Failure
X Reports First Increase in UK Revenues Following Advertiser Boycott
Shetland Islands Council Approves £400 Million Inter-Island Tunnel Project
Foreign Secretary Ed Miliband Warns Iran Against Hostile Activities on British Soil
UK Ministers Concede Chagos Islands Sovereignty Agreement Terminated After US Opposition
More in Common Poll Projects Hung Parliament with Labour Leading and Reform UK Gains
Prime Minister Andy Burnham Defends Economic Strategy as Public Finances Face Headwinds
Tony Blair Urges Government to Set Long-Term Goal of Rejoining the European Union
Prime Minister Andy Burnham Pledges Universal Free Social Care Funded Through General Taxation
UK Diesel and Petrol Prices Surge Near All-Time Highs Amid Middle East Energy Volatility
Analysis of Reform UK conference highlights deep political divisions over welfare and immigration
Bangladesh garment exports to the United Kingdom reach $915 million in early fiscal year
Royal Navy begins sea trials for new HMS Agamemnon hunter-killer submarine
New report suggests UK data centre expansion will create far fewer jobs than predicted
Major weekend closures announced for London Underground Piccadilly and Central lines
NHS leaders call for emergency winter funding to combat staffing shortages and rising illness
Far-right activist Daniel Thomas charged following alleged slashing of migrant dinghy
Home Secretary orders urgent review of border security following rise in small boat crossings
Prime Minister Andy Burnham to address Labour Party conference amid calls for long-term infrastructure plan
UK Treasury and Bank of England warn of rising inflation risks amid Middle East tensions
Royal Navy Diving Squadron Honoured for Global Bomb Disposal Efforts
UK State Pension Set to Approach £13,000 Per Year Under Triple-Lock
Rolls-Royce Wins Multi-Million-Pound Engine Contract with Philippine Airlines
TfL Questions Future of Heathrow Express Amid Proposed £33 Billion Expansion
Ed Miliband Warns Iran Against Hostile Operations on British Soil
S&P Global Manufacturing Index Signals Stabilization Amid Rising Fuel Costs
Prime Minister Andy Burnham Launches National Centre for Information Defence
UK Food and Drink Trade Deficit Surges to £21.1 Billion
OECD Upgrades United Kingdom Economic Growth Forecast to 1.1 Percent
Bank of England Faces Policy Challenges as Energy Prices Push Inflation Projections Higher
IMF Urges UK and Major Economies to Reduce Public Borrowing and Debt
UK Government Concedes Chagos Islands Sovereignty Deal is Dead Following Trump Opposition
Prosecutors Seek More Than 10 Years in Prison for Former DUP Leader Jeffrey Donaldson
UK Provided £66 Million in Emergency Security Funding for Mosques After Southport Disorder
Manston Inquiry Examines Role of Government Decisions in 2022 Overcrowding Crisis
Justice System Capacity Pressures Raise Concerns Over Release of Sex Offenders
UK Food and Drink Trade Deficit Widens to Record £21.1 Billion
UK Releases Climate Security Findings Previously Withheld Under Starmer
TalkTalk Races to Sell Consumer and Broadband Businesses as Administration Threat Looms
NHS Bodies Impose Minimum Two-Year Waits for ADHD and Autism Assessments
Andy Burnham Pledges £210 Million to Revive Boarded-Up High Streets
×