William Eichler 21 December 2017

London mayor to increase council tax

Sadiq Khan today announced proposals to increase his share of council tax from April 2018 by an average of 27p a week in order to fund emergency services.

The Government said on Tuesday that funding for the Metropolitan Police would not be increased.

However, it allowed London’s mayor to increase the Policing Precept by a maximum of £12 a year before having to hold a council tax referendum.

Mr Khan has decided to increase this precept to the maximum amount allowed. This is the equivalent of 23p a week - a 5.8% increase.

The mayor also intends to increase the non-Policing Precept by 2.99%, again the maximum permitted by the Government. This is the equivalent of £2.20 a year or just over 4p a week and will help fund fire services.

Overall, the mayor’s share of council tax will increase by 5.1% or £14.20 a year in cash terms. This means the precept for an average Band D taxpayer will increase from £280.02 to £294.22.

‘Nothing is more important to me than keeping Londoners safe,’ said Mr Khan.

‘The Government has refused to back the Metropolitan Police or the London Fire Brigade with the money they need and so I have been left with no choice but to propose increasing council tax to protect our city from the threats that we face.

‘I’m sensitive to the fact that council tax is a regressive form of taxation – as it hits those who can least afford to pay it the hardest, so this is certainly not a decision I take lightly.’

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