council tax
Councils are grappling with significant budget shortfalls, leading to discussions and approvals of council tax increases.
Councils are currently grappling with significant budget shortfalls, leading to discussions and decisions regarding council tax. Sutton Council faces a £36.5 million budget gap over three years, as reported in October 2026. Lambeth Council projected a £9.3 million overspend for the first quarter of 2026/27 in September 2026, while Barnet Council forecast a £2.6 million Q1 overspend for the same period. These pressures, often driven by rising demand in social care and temporary accommodation, have prompted councils like Wandsworth to consider council tax increases, as discussed in July 2026.
Following these financial pressures, several councils approved council tax increases earlier in 2026. Waltham Forest Council approved a 4.99% increase in May 2026, including an Adult Social Care Precept. Haringey Council, Croydon Council, Southwark Council, and Enfield Council also approved similar increases in March 2026. Looking ahead, Croydon Council's Cabinet agreed in September 2026 to consult on potential changes to its Council Tax Support Scheme for working-age residents, indicating ongoing review of how the local government tax is applied.
Council tax, a local government tax based on residential property value used to fund local services, is being discussed as councils face escalating costs. Many councils, including Kensington and Chelsea, Westminster, and Bexley, have reported projected budget deficits extending to 2030 and beyond, citing government funding reforms, inflation, and social care demands as key drivers.
Key facts
- Sutton Council faces a projected budget gap of £36.5 million over the next three years. Source
- Lambeth Council projects a £9.3 million overspend for the first quarter of 2026/27. Source
- Barnet Council forecasts a £2.621 million overspend for Q1 of the 2026-27 financial year. Source
- Hounslow Council formally adopted its One Hounslow Financial Strategy 2026-2030 in September 2026. Source
- Waltham Forest Council approved a 4.99% increase in council tax in May 2026. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on, with background from Wikipedia. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 7 October 2026. Spotted a mistake? Email community@opencouncil.network.