Key Points
- South London councils plan tax rises.
- Increases near 5% for 2026/27 year.
- Lower than Croydon’s £2,480 Band D.
- Budget gaps from social care costs.
- Neighbours like Kingston highest bills.
South London (The Londononer News) February 16, 2026 – A South London council is poised to approve a council tax increase for the 2026/27 financial year, with officials emphasising that the proposed hike remains below those imposed by several neighbouring boroughs facing steeper financial strains. The move comes amid widespread budget pressures across London, where many authorities are grappling with escalating costs for adult social care and temporary housing. Analysis reveals average Band D bills in the area will rise, but council leaders argue residents face a comparatively lighter burden than in high-tax zones like Croydon and Kingston upon Thames.
What is the proposed council tax rise in South London for 2026?
The proposed increases align with the government's 4.99 per cent referendum cap for most boroughs, comprising a 2.99 per cent rise for general council services and a 2 per cent adult social care precept. In Southwark, the total Band D bill stands at £1,877.90 currently, with a predicted £89.50 uplift including the Greater London Authority (GLA) precept, pushing it towards £1,967. Merton anticipates a £100.03 increase to £2,088.43 Band D, marking the first breach of £2,000 in that borough. Sutton faces a £109.09 rise to £2,269.72, while Bromley sees £97.73 added to £2,042.46.
As reported by Pippa Allen-Kinross of the London Evening Standard, thousands more Londoners will face average council tax bills of over £2,000 for the first time next year. This includes South London areas where Hackney, though not strictly South, and Lambeth – neighbouring Southwark – tip over the threshold. Southwark Council has not detailed exact 2026 figures beyond projections, but past patterns show maximum allowable hikes, as noted in Liberal Democrat critiques.
Council documents across boroughs highlight the necessity of these rises to balance budgets strained by statutory duties.
Greenwich leader Anthony Okereke said: “Our draft budget serves as a stark reminder of the financial realities created by decades of underfunding by the previous government. This damage cannot be done overnight.”
Why are South London councils raising council tax in 2026?
Funding shortfalls dominate the rationale, with London Councils warning of a collective £1 billion budget shortfall last year. Seven boroughs sought emergency government cash in 2025 due to soaring social care and housing costs. In South London, Croydon exemplifies the crisis, with debts nearing £1.8 billion – over a fifth of its budget servicing interest – prompting pleas for £136 million more aid.
Sutton Council leader Ruth Dombey, as covered by southlondon.co.uk, stated during a March budget approval (reflecting ongoing trends into 2026): “We now live in a world where vital services for the elderly, people with disabilities and children with special needs are funded by council tax. Not a tax based on your ability to pay, but rather the value of your home 30 years ago.”
This underscores reliance on council tax, funding 80 per cent of some budgets like Harrow's.
Sir Sadiq Khan's GLA precept adds £20.13 annually, from £490.38 to £510.51 for Band D, primarily for Metropolitan Police funding. As per the Standard's analysis, town halls can raise by up to 5 per cent without referendum or special permission.
How does South London's tax rise compare to neighbouring boroughs?
South London councils position their hikes as restrained relative to neighbours. Croydon tops with £2,480.48 Band D current, plus £119.63 projected rise – the second-highest after Kingston's £2,488.35 plus £120.02.
Executive Mayor Jason Perry pledged adherence to the cap: “The Executive Mayor of Croydon has pledged not to increase council tax above the cap.”
Merton, at £2,088.43 post-increase, contrasts sharply with Lib-Dem Kingston's peak rates, where Labour's freeze on the main element keeps it £400 lower, per Wimbledon Labour. Bromley at £2,042.46 trails Bexley (£2,258) and Sutton (£2,269). Southwark's £1,877.90 remains below Lambeth (£1,953.95 + £93.30) and Lewisham (£2,135).
Cllr Anood Al-Samerai of Southwark Lib-Dems, reported by southwark-libdems.org.uk, criticised: ‘People in Southwark are finding money is tight.
The Labour administration has always found the money for its own pet projects... Instead, it has taken the lazy option of ramping up council tax to the max.’ She highlighted Sutton's 99 per cent collection rate enabling lower effective burdens.
Inside Croydon noted Perry's cumulative hikes reaching 27 per cent by 2025, with Band D council services portion from £1,384 to £1,724 far exceeding Southwark or Merton trajectories.
Which South London boroughs face the highest bills?
Kingston and Croydon lead infamy, but within core South London Southwark, Lambeth, Lewisham, Croydon, Merton, Sutton, Bromley Croydon dominates at nearly £2,500 projected. Sutton (£2,269), Bromley (£2,042), Merton (£2,088) follow, per Standard tables.
Harrow (£2,395) and Havering (£2,313) nearby amplify comparisons. Wandsworth bucks trends at £990 + £45.11, the lowest nationally. The Institute for Fiscal Studies warned of potential 75 per cent surges in low-tax areas like Wandsworth post-funding cuts.
Lambeth supports 4,600 homeless households, costs hitting £100 million yearly, per council statements.
What financial pressures drive these 2026 decisions?
Social care consumes 60 per cent in places like Richmond. Croydon's crisis persists, with maximum hikes compounding prior 15 per cent and 5 per cent rises. Haringey seeks £37 million exceptional support, citing inner London needs on outer funding.
Barnet requests £55.7 million aid. Newham Mayor Rokhsana Fiaz proposes hikes “with a heavy heart”, adjusting benefits to make poorest pay 35 per cent share. London-wide, 15 boroughs exceed £2,000 already; more like Merton join in 2026. Hackney draws £10 million reserves, eyes £51 million savings by 2028 amid £135 million homelessness spend.
Are there criticisms of South London council spending?
Opposition voices decry priorities. Southwark spent thousands on takeaways amid 4.99 per cent hikes, per GB News: 'It speaks to a culture where other people’s money is treated as an endless slush fund,' one critic said. Lib-Dems flag grants to Tate and councillor perks over efficiencies.
Sutton Conservatives abstained, questioning SEND funding tweaks. Croydon borrows mega-millions despite pledges. Merton Labour touts freezes versus Kingston, but precept rises for care persist.
Band D households face £89-£119 extras, equating £1.39-£2.30 weekly. Low-income schemes adjust; Lambeth consults on bands covering 73.5 per cent top-rate for 23,000 homes (£27 million). Newham hikes poorest contributions.
Councils like Kensington offer £50 payments to 15,000 low-earners. Havering closes libraries to save £288,000.
How does government policy affect these rises?
Labour lifted 5 per cent caps for six areas including Kensington, Wandsworth, allowing >5 per cent sans referendum due to low baselines (£450-£1,280 below average). No successful referendums historically; permissions rise amid distress.
Central grants assume max hikes, per Sutton: “Government often talks about the amount of extra funding they provide local authorities. These figures include the assumption that we will increase the amount of council tax we charge our residents to the maximum.”
Savings feature prominently: Croydon eyes £22 million cuts. Hackney £51 million by 2028. Efficiencies like Sutton's collection lauded. Some freeze mains (Merton), hike only precepts. Havering converts offices to homeless housing. Richmond prioritises care despite hikes.
Unlikely for capped rises; special for distress like Croydon's past 15 per cent. IFS flags potential mega-hikes in low-tax zones 2027/28.
What is the timeline for 2026 council tax approvals?
Drafts circulate now; full councils ratify February-March 2026, effective April. Sadiq Khan announced precept Thursday prior. Merton sets freeze soon.
London Councils urges sector solutions.
This scenario reflects acute pressures on local government, with South London councils navigating fiscal tightropes while asserting relative restraint against neighbours' extremes. Residents await final votes, hoping for mitigations amid unrelenting demands.