Residents in Bromley are facing a significant increase in their annual council tax bills, with the local authority proposing a hike that will add nearly £100 to the average household's payments for the coming financial year.
Financial Strain and Proposed Tax Rise
Bromley Council has revealed plans to increase council tax by 4.99 per cent for the 2026/27 financial year, which represents the maximum allowable rise without triggering a local referendum. This increase comes as the South London borough grapples with substantial financial pressures and anticipates major reductions in central government funding.
The proposed increase means the average Band D property in Bromley will see their annual council tax payment rise from £2,042.46 to £2,140.04, representing an additional £97.58 per household. When combined with Mayor Sadiq Khan's planned 4.1 per cent increase to the Greater London Authority precept, Bromley residents will face an overall council tax increase of 4.78 per cent compared to the previous year.
Government Funding Cuts Loom Large
Council officials have expressed serious concerns about the impact of the Government's Fair Funding Review, which they believe will result in Bromley losing over £30 million per year by the 2028/29 financial year, after accounting for inflation. The authority had initially hoped the review would provide fairer and potentially higher funding levels, but instead faces what it describes as "significant losses" through what amounts to a redistribution of grant funding.
The council report states: "The outcome of the Government review results in significant losses for the council. The outcome also has an underlying expectation that additional funding required may need to be met by significant council tax increases to fund services, whilst council tax levels remain below the national average."
Growing Budget Gaps and Reserve Depletion
Bromley Council is confronting increasingly severe budget challenges, with projections showing a £43.3 million gap in 2027/28 that expands to £61.1 million by 2028/29. These growing deficits are attributed primarily to rising costs in adult and children's social care services alongside the anticipated reduction in central government support.
To address next year's financial shortfall, the council plans to spend £26.4 million from its reserves while implementing the council tax increase, which is expected to generate £10.5 million in additional revenue. This follows a pattern of reserve depletion, with Bromley having spent £77.6 million from its reserves over the previous two years primarily to balance budgets.
The continued use of reserves raises sustainability concerns, with earmarked reserves projected to fall from £192 million to £114 million, and further decreasing to £62.7 million by the end of 2028/29. The council report warns: "Without any action to address the budget gap in future years, reserves will need to continue to be used with the risk of the budget gap increasing in future years and becoming unsustainable."
Cost-Saving Measures and Service Transformation
Alongside the tax increase, Bromley Council is implementing its 'Transforming Bromley' savings project, which aims to deliver nearly £30 million in efficiencies. Key elements of this programme include:
- Acquiring 15-year leases for up to 300 residential units to reduce reliance on expensive temporary accommodation
- Realigning six Children and Family Centres and four Youth Hubs into four integrated Family Hubs
- Conducting a comprehensive review of how adult social care services are delivered
Despite these planned savings and the additional revenue from increased council tax, the authority still anticipates a £26.4 million shortfall for the coming financial year, necessitating the substantial draw on reserves.
Decision Process and Future Implications
The council tax proposals will be presented to Bromley Council's Executive committee, where members will vote on whether to advance the plans to a full council budget meeting scheduled for February 26. The outcome will have significant implications for both council finances and resident household budgets in one of London's largest boroughs.
The situation highlights broader challenges facing local authorities across the capital, particularly those dealing with increasing social care costs while facing reductions in central government funding. Bromley's experience serves as a case study in how changing funding formulas and rising service demands are creating difficult choices for local councils and their residents.
