Lambeth council is considering seeking government permission to exceed the 5% cap on council tax increases, similar to what Bromley has done, due to budget shortfalls projected to reach nearly £130 million by 2029/30. This shortfall stems from rising service costs, particularly in temporary accommodation and social care. The Labour Party criticizes Lambeth’s Green-led administration for making unaffordable promises during the election. Any increase would need approval from Liberal Democrat councillors at a full council meeting.
Written locally by qwen2.5:14b on 2026-09-19,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Bromley Council, led by Colin Smith, is considering raising council tax by more than the standard 5% cap due to a £30 million reduction in funding from the government by 2028. Similarly, Lambeth Council is exploring options to exceed the maximum allowable increase without holding a referendum. This comes as Lambeth predicts an almost £130 million budget shortfall by 2029/30 due to rising service costs and increasing demand for social care and temporary accommodation. The Labour government’s "Fairer Funding Review" will significantly cut funding for five London councils, including Bromley and Lambeth, which have historically low council tax rates. Westminster Council warns that resident bills could rise by 200% unless there are drastic service cuts, reflecting a broader trend of local authorities facing significant financial pressures.
Written for “London Council Tax Hike” on 2026-10-04,
grounded in this article and the 0 other(s) covering the same event.
Lambeth council is understood to have joined Bromley in examining whether it could get special Government permission to increase bills by more than the maximum in England without holding a referendum.
uncertain
it → understand → referendum
The town hall is predicting an almost £130 million blackhole in its budget by 2029/30 due to rising service costs, driven predominantly by increasing demand for temporary accommodation and social care.
asserted
hall → predict → accommodation
Under Labour’s Fairer Funding Review the five London councils with “historically very low bills”, along with Windsor and Maidenhead, will see the cash they receive from central government significantly slashed.
asserted
they → see → government
Westminster town hall has said resident bills could have to rise by 200% unless there are major cuts to services.
uncertain
bills → say → services
A Lambeth council spokesman stressed that “no decisions” on council tax rates for 2027/8 have yet been made but added it had “called strongly on the Government to reverse deep cuts to funding, including those made under the so-called 'Fair Funding Review’.”
He added: “These most recent cuts follow a 30% real terms fall in our spending power since 2010.
asserted
cuts → stress → 2010
“Meanwhile, we've seen a massive rise in demand for frontline services, especially temporary accommodation, adult's and children's social care.”
asserted
we → see → services
Read More
Lambeth is run by the Greens, but the party does not have a majority and relies on votes from Liberal Democrat councillors to get policies approved.
asserted
policies → read → councillors
Any bill increases would have to be signed off at a full council meeting.
asserted
increases → have → meeting
A Lambeth Labour spokesperson said: “The Lambeth Green Party made lots of unfunded promises to get people to vote for them in May, which they are now realising they can’t deliver.
uncertain
they → say → which
“They should be honest with residents and apologise, rather than secretly trying to clobber them with huge Council Tax bill increases to pay for their mistakes.
asserted
They → apologise → mistakes
“Lambeth Labour was proud to be an administration that championed fairness, transparency and putting residents first.
asserted
that → champion → residents
The Lambeth Greens have put their own interests first instead, and now expect our residents to pick up the bill.”
asserted
residents → put → bill
Bromley council has already had “high level talks with senior civil servants” about exceeding the 5% cap the Government puts on council tax bill rises.
asserted
Government → have → rises
The local authority said it will see £30.5m stripped from its funding in real terms by 2028/29 and it is facing by “far the biggest financial challenge” it has ever seen.
asserted
it → say → challenge
Tory council leader Colin Smith said: “The Government’s decision to reduce Bromley’s funding by over £30m by 2028 leaves us with no other viable option than to consider a higher than desirable council tax increase and that is the painful exercise we have now had to embark on.”
Standard council tax increases are capped in England at 5%, with 3% going to local authority budgets plus 2% for the adult social care precept.
If a local authority wants to increase bills by more than this they usually have to hold a referendum and get residents to agree.
asserted
residents → say → referendum
But the Government can lift this cap for councils under special circumstances.
asserted
Government → lift → circumstances
Croydon controversial upped council tax by 15% in 2023 after the borough was forced to declare itself effectively bankrupt for a third time.
asserted
itself → up → time
In Newham, council tax increased by 8.99% last year.
asserted
tax → increase → %
The Ministry for Housing, Communities and Local Government said it treats conversations with councils about their financial positions in confidence.
asserted
it → say → confidence
A Government spokesman added: “Local authorities decide the level of council tax they wish to set, but we are clear that in doing so they should put taxpayers first.
asserted
they → add → taxpayers
“We’ve made over £78 billion available for council finances next year, with the majority of money unringfenced so local leaders can decide how best to spend on their local priorities – alongside fixing an outdated funding system, so funding goes where need is greatest.”
asserted
need → make → system
The Aporia
