London Daily

Focus on the big picture.
Sunday, Apr 05, 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
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
×