Southwark Residents Confront Significant Council Tax Hike from April 2026
Households in Southwark are bracing for a substantial financial adjustment as the local council prepares to implement a 4.99 per cent increase in council tax starting in April 2026. This adjustment will push the annual bill for a typical Band D property to £1,967.26, marking a significant rise that brings the total close to the £2,000 threshold.
Breakdown of the Proposed Tax Increase
The proposed council tax rise is composed of two distinct elements: a 2.99 per cent increase in core council tax and an additional 2 per cent adult social care precept. This combined approach is designed to address mounting pressures in social care services, which have been exacerbated by reductions in central government grants. Southwark Council has emphasized in its budget report that this increase is essential to maintain vital services amidst financial constraints.
In addition to the council tax components, the total bill includes a Greater London Authority (GLA) precept of £510.51, which funds critical metropolitan services such as police, fire, and transport across London. This precept is a standard part of council tax bills in the capital, contributing to the overall financial burden on residents.
Council Meeting to Formalize Budget Plans
The council's budget proposals are scheduled for discussion and formal approval at a Southwark Council meeting on Wednesday, February 25. This session aims to finalize the 2026/27 budget, review the council's long-term financial strategy, and officially set the council tax rates for the upcoming fiscal year. The outcome of this meeting will have direct implications for thousands of households across the borough.
Parallel Increases in Housing Rents and Charges
Alongside the council tax hike, Southwark Council is set to approve a 4.8 per cent increase in rents for thousands of council homes, also effective from April 2026. This adjustment is attributed to ongoing significant financial challenges within the Housing Revenue Account (HRA), a ring-fenced account dedicated to managing the council's housing stock and related services.
The Labour-run council has pointed to previous Conservative government interventions in rent policy as a primary cause of resource shortfalls, arguing that these have hindered the ability to address critical issues like damp and mould in housing. To generate necessary revenue, the council asserts that raising rents and charges is unavoidable.
Government Formula Drives Rent Adjustments
The proposed 4.8 per cent rent increase aligns with the government's 10-year social housing rent settlement, which permits annual adjustments based on the Consumer Price Index (CPI) plus 1 per cent. With the CPI recorded at 3.8 per cent in September 2025, the addition of 1 per cent results in the overall 4.8 per cent figure. This formula applies uniformly across social housing sectors, ensuring consistency in rent adjustments.
Furthermore, shared ownership properties managed by the council will see their rents increase by the same 4.8 per cent from April 2026. Additionally, tenant service charges, which cover essential estate services such as cleaning, grounds maintenance, communal lighting, and door entry systems, are set to rise from £14.10 per week to £15.15 per week for the 2026-27 period. These adjustments reflect the council's broader strategy to bolster financial resources amid escalating operational costs.
The combined impact of these changes underscores the growing financial pressures on Southwark residents, as both council tax and housing costs are poised for simultaneous increases. The council maintains that these measures are crucial for sustaining public services and addressing housing quality issues, though they will undoubtedly strain household budgets across the borough.
