Richmond Residents Confront Significant Council Tax Increase
Households in Richmond are bracing for a substantial rise in their council tax bills, with the local authority proposing a maximum allowable increase of 4.99% from April 2026. This move comes as Richmond Council grapples with what it describes as unprecedented cuts in Government funding, necessitating tough financial decisions to safeguard essential public services.
Detailed Breakdown of Proposed Tax Hikes
The council's budget plans for the 2026/27 financial year include a dual-component increase: a 2.99% rise for general council expenditure and an additional 2% specifically earmarked for adult social care. For a typical Band D property, this translates to a total annual council tax bill of £2,486.10, representing an overall increase of £114.03, or approximately £2.19 per week.
This figure comprises the council's own share, which will rise by £93.90 to £1,975.59, plus the Mayor of London's precept, set to increase by £20.13 to £510.50 for Band D households. The mayoral portion funds critical services including policing, fire services, and transport infrastructure across the capital.
Underlying Financial Pressures and Government Cuts
A recent council report highlights severe financial challenges, projecting annual real-terms funding reductions of around £29 million by 2028/29 under the new government funding formula, known as the Fair Funding Review 2.0. Although successful lobbying has secured a cash-flat settlement for the next three years, this protection is contingent upon implementing the maximum council tax increase and does not account for inflationary pressures, meaning funding will effectively decline in real value.
To address these deficits, the council has launched a transformation programme aimed at delivering £30 million in savings by 2028/29. This initiative focuses on enhancing service efficiency and improving outcomes for residents while maintaining financial sustainability.
Budget Allocations and Strategic Priorities
The proposed budget for 2026/27 totals £178.5 million for resident services, with specific allocations including:
- An additional £3.2 million to address challenges in children's social care and education
- £1.2 million extra to alleviate pressures on homelessness services
- £4.7 million more for maintaining essential infrastructure
- A further £500,000 to complete the expansion of food waste collections to all properties in Richmond
Council priorities emphasised in the budget report focus on supporting residents through ongoing cost-of-living pressures, delivering key services, and ensuring long-term financial stability. Strategic objectives include:
- Developing fairer and more sustainable finances
- Increasing the supply of genuinely affordable housing
- Implementing the climate and nature strategy
- Investing in youth services
- Tackling violent crime and anti-social behaviour
Complete Council Tax Band Breakdown
If the proposed 4.99% increase is approved, Richmond residents will face the following annual council tax bills, incorporating both the council's share and the Mayor of London's precept:
- Band A: £1,657.40
- Band B: £1,933.63
- Band C: £2,209.87
- Band D: £2,486.10
- Band E: £3,038.57
- Band F: £3,591.03
- Band G: £4,143.49
- Band H: £4,972.19
Regulatory Context and Support Mechanisms
The government's decision in November 2022 to lift the referendum cap allows councils to increase taxes by up to 4.99% annually without requiring resident approval through a local vote. For residents experiencing financial hardship, Richmond Council offers assistance through its council tax reduction scheme and dedicated cost-of-living support hub.
The final decision on the budget proposals will be made at a council vote scheduled for March 3, determining the financial landscape for Richmond's public services in the coming year.
