Council Tax: Greater London
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the answer of 9 February 2026 to Question 109623 on Local Government Finance: City of Westminster and Wandsworth, what assessment he has been made of the potential impact of the removal of the 5% + £150 on Band D increases in council tax in each of the two years from 2027-29 on the viability of local services.
Answered by Alison McGovern
The government is committed to ensuring the local government funding system is fair for taxpayers across the country. The relative strength of council tax bases has meant that some places can set far lower levels of council tax than others, and raise as much or more. This means that in some areas of the country, council tax levels are lower than others despite homes being worth more.
To increase fairness for taxpayers, provide better value for money and enable the rebalancing of disparities in council tax levels, the government intends not to set referendum principles in 2027-28 and 2028-29 for six upper-tier authorities with the lowest council tax levels including the City of Westminster and Wandsworth councils. These authorities will still receive 95% income protection through the Local Government Finance Settlement as we support authorities to reach their updated funding positions over the course of the three years, giving them time to plan for these changes.
The government is not forcing increases on these councils. Council tax levels are decided by local authorities who will consider their local circumstances.
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