Sadiq Khan plans 8.6% council tax hike - says 'no viable alternative' for TfL and Met Police

Mayor of London Sadiq Khan has announced plans to increase his share of council tax by 8.6%.

The proposals mean the Greater London Authority's (GLA) share of council tax would increase from £434.14 a year to £471.40 for an average, 'band D', household - an increase of £37.26.

Mr Khan's office says the decision follows the government’s "failure to properly fund the Metropolitan Police Service, Transport for London (TfL) and the London Fire Brigade (LFB)".

Individual borough councils are responsible for setting their own rates, in addition to the GLA precept.

Sadiq Khan's case for London council tax increase

The mayor of London, Sadiq Khan, said: “The last thing I want to do is increase council tax, but against the backdrop of the government’s refusal to provide enough support for London’s essential public services, I have no viable alternative but to use all the levers at my disposal to provide urgent funding from City Hall, particularly for the police.

"The government has announced that policing in London is set to get just over half the percentage increase in funding compared to the rest of the country. How can this be right when the Met has had to undertake a huge amount of national policing activities over recent months without any additional funding from the government? This is putting an enormous strain on an already stretched police service. That’s why I’m having to step in with additional funding from City Hall to ensure the police in London can bear down on violent crime, continue to reform and make our city safer.

“We are going through a challenging time in London due to the state of the national economy, the impact of austerity and the cost-of-living crisis. But I’m confident that this budget will not only support and improve our public services in our city, but help us to continue building a fairer, greener and safer London for everyone.”

The full budget proposals will be published in the new year.

Conservatives

Havering & Redbridge Conservative London Assembly member Keith Prince said: “Sadiq Khan must drop his plans to increase his share of council tax next year by 8.6% - almost twice the rate of inflation. Under Sadiq Khan, the mayor’s share of council tax has increased by 70% - from £276.00 in 2017 to £471.40 for an average Band D household next year. 

“The mayor has a £21bn annual budget. In case he hasn’t noticed, we’re living through a cost of living crisis. We have consistently called on Sadiq Khan to freeze his share of council tax during the cost of living crisis. If Sadiq Khan managed London’s finances better, he would not need to increase his share of council tax. Sadiq Khan has shown he is incapable of managing London’s finances. 

“Transport for London is a financial basket case - £14bn in debt and forced to seek over £6bn in bailouts from taxpayers. The Met is constantly asking for more money but wastes millions on overtime and recruitment because experienced officers are leaving in droves. Sadiq Khan is using Londoner’s as a cash machine. His expansion of ULEZ to outer London is an unfair tax grab on the poorest in our city which is expected to rake in over £300m this year alone.”

Michael Gove

Levelling up secretary Michael Gove announced a 6.5% funding increase for local authorities on Monday, saying: "Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve.  

"We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up."