Greenwich Council has announced plans to raise council tax by 4.99 per cent from the start of the next financial year, a move that will see the average household in the south London borough paying nearly £100 extra annually. The authority is also proposing £7.1 million in savings to deliver a balanced budget for 2026/27, with a significant portion coming from a review of children's social care services.
Council Tax Hike Details
The proposed increase consists of a 2.99 per cent rise in the main council tax rate and a 2 per cent increase in the Adult Social Care precept. This represents the maximum amount the council can implement without triggering a local referendum. For a Band D property, this translates to an additional £1.46 per week, or almost £76 more per year, before accounting for the Greater London Authority (GLA) precept.
When combined with the GLA precept, which Mayor Sadiq Khan is set to increase by £20.13 for Band D properties, the total weekly increase for Greenwich residents rises to £1.85. Overall, the council tax increase is expected to generate £6.9 million in additional revenue, helping to address nearly half of the predicted £14 million budget gap for the upcoming year.
Budget Challenges and Savings Measures
A report on the council's medium-term financial strategy, due before the Overview and Scrutiny Committee on February 9, outlines how Greenwich aims to achieve a balanced budget. The cash-strapped authority forecasts a £35 million deficit by 2027/28, escalating to over £100 million by 2029/30. To bridge the immediate shortfall, the council has identified £7.1 million in savings, primarily through operational reviews and efficiency measures.
Key Savings Initiatives
- Children's Social Care Review: The largest savings, driven by the Department for Education's Family First reforms, will come from reviewing children's social care operations and management, including reducing reliance on agency staff.
- Adult Social Care Restructuring: £508,000 will be saved by transitioning to a neighbourhood-based model for adult social care, aiming to bring support closer to communities and improve accessibility.
- Digital Transformation: A new digital strategy is projected to save £600,000 through staff reshuffling, budget reviews, and flexible funding mechanisms.
- Customer Service Changes: Moving to a demand-led model in customer services will save £500,000 by shifting from phone to digital channels and not replacing departing contact centre staff.
- Additional Measures: Other savings include reviewing reablement services, implementing AI-based translation tools, and reducing benefits service staff as Universal Credit reduces demand.
Impact on Residents and Services
The council tax increase and savings plan are designed to maintain essential services while addressing financial pressures. Greenwich Council emphasises that the changes aim to deliver a high-quality, coordinated service that meets residents' needs, particularly in social care. However, the shift towards digital services and reduced staffing in some areas may require adjustments for residents accustomed to traditional contact methods.
With the budget proposals set for scrutiny, Greenwich Council continues to navigate the challenges of local government finance, balancing fiscal responsibility with community support in a period of rising costs and demand.
