Residents in six of England's wealthiest areas are facing significant council tax increases, with local authorities granted permission to raise bills by more than 5% without holding a mandatory referendum.
Which Councils Are Affected?
The decision, which comes into effect after Christmas, applies to six authorities in London and the South East. Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, the City of London, and Windsor and Maidenhead will all be permitted to raise their rates beyond the standard referendum threshold.
This special dispensation allows them to increase council tax by over 5% for a period of two years, bypassing the usual requirement for local voter approval on such hikes.
Why Are The Hikes Happening?
The move is linked to a broader government review of local authority funding, which aims to redirect more central funds towards more deprived parts of the country from next year. Consequently, these wealthier councils are among those expected to receive less central government support.
The Conservative Party has criticised the funding shake-up, arguing it "punish[es] councils that keep council tax low" while "moving funding to badly-run Labour councils that spend irresponsibly."
Shadow local government secretary Sir James Cleverly warned that councils losing out would be forced to cut services or raise taxes, and with referendum rules scrapped, the increases would be substantial. Meanwhile, Reform UK claimed the settlement would disadvantage rural areas, funnelling money towards "Labour-dominated London and city councils."
Public Reaction and Wider Impact
The announcement has sparked anger among residents, with many expressing frustration over rising bills and perceived declines in local services. One resident complained that their Band B council tax was approximately £800 higher than if it had simply tracked inflation since its introduction.
"Services have deteriorated, roads are a mess, no real police service, everywhere I look it’s decay and mess," they said.
Another critic highlighted a sense of unfairness, stating: "Under the new proposals you'll be taxed to make up for poor council spending in an area you don't even live." Others accused politicians of breaking past promises on tax levels and criticised council management for cutting services while increasing executive pay.
The debate underscores the growing tension between local funding needs, central government policy, and the burden on household finances, setting the stage for further political conflict over council tax and public service provision.
