Tens of thousands more Londoners are likely to face £2,000 annual council tax bills for the first time from April in the latest cost of living blow.
Housing and Communities Secretary Michael Gove announced a 6.5 per cent increase in funding for local authorities in England on Monday amid growing fears about the number facing effective bankruptcy.
The Government has also told town halls they can increase bills by 5 per cent in the spring after warnings that services were stretched to capacity.
Average bills in eight boroughs are currently over £2,000. Residents in Kingston, Croydon, Harrow, Richmond, Havering, Waltham Forest, Sutton and Bexley face the highest statements in the capital.
It means the maximum 5 per cent rise will force seven more boroughs - Haringey, Redbridge, Enfield, Lewisham, Brent, Camden and Barking and Dagenham - to impose payments of over £2,000 on Band D households for the first time.
Trust for London has argued the current council tax system in the capital is unfair and "highly regressive in relation to property values", putting an "unduly large burden in terms of income" on poorer Londoners.
Average bills in Westminster, London's richest borough, are the lowest in England and half what they are in Barking and Dagenham, the capital's poorest borough.
The owner of what is thought to be Britain's most expensive home - the £250million 40-bedroom mega mansion known as The Holme in Regents Park - currently pays a smaller levy than the average household in 20 London boroughs.
The Band H property faces a £1,824-a-year council tax bill, less than a three-bed flat in Bolden Street, Lewisham or a standard terrace in Forterie Gardens, Ilford.
Deputy Leader of Redbridge Council, Kam Rai, said: "Once again we’re faced with the government playing Scrooge just before Christmas.
"The government has decimated funding to local councils for over 13 years, sent inflation through the roof, and forced councils to take on extra responsibility without additional money.
"In Redbridge alone, we've lost around 55 per cent of government funding since 2010, and we have the fifth lowest funding per head in London. “
It comes as umbrella group London Councils warned that budgets are on a "knife edge" in many boroughs as overspending increases, particularly on housing and social care.
This year Birmingham, Nottingham and Woking issued section 114 notices, preventing all but essential spending, and around one in six council bosses believe it is “fairly or very likely” that they will go bust in the next 15 months.
In London, Croydon has declared bankruptcy three times and last year the borough was given Government permission to increase council tax by a record 15 per cent in a bid to help it balance the books.
Havering has warned it could be bankrupt within six months, while Enfield has £1.12bn of debt, the 10th highest of England's local authorities, but insists there is "no evidence" it could go bust in the near future.
Mr Gove said the Government's new funding package would be worth more £64bn to local authorities.
“Councils are the backbone of their communities and carry out tremendous work every day in delivering vital services to the people they serve," he said.
“We recognise they are facing challenges and that is why we have announced a £64 billion funding package to ensure they can continue making a difference, including through our combined efforts to level up.”
But London Councils said town halls "will continue to face enormous and unsustainable budget pressures next year", despite increases to funding.
Boroughs estimate a collective shortfall of £500million.
2023/23 Annual Council Tax Bills, including the £434 City Hall precept
Borough |
2023/24 Average Annual Bill (Band D) |
Political Control |
Kingston |
£2,246.71 (Wimbledon and Putney Common homes: £2,282.67) |
Liberal Democrat |
Croydon |
£2,239.56 |
Conservative |
Harrow |
£2,162.80 |
Conservative |
Richmond |
£2,141.21 |
Liberal Democrat |
Havering |
£2,088.13 |
No overall control |
Waltham Forest |
£2,055.55 |
Labour |
Sutton |
£2,048.38 |
Liberal Democrat |
Bexley |
£2,037.76 |
Conservative |
Haringey |
£1,992.32 |
Labour |
Redbridge |
£1975.75 |
Labour |
Enfield |
£1,952.44 |
Labour |
Lewisham |
£1,926.27 |
Labour |
Brent |
£1,924.45 |
Labour |
Camden |
£1,900.16 |
Labour |
Barking & Dagenham |
£1,892.71 |
Labour |
Merton |
£1,883.82 (Wimbledon Common homes: £1,919.78) |
Labour |
Hounslow |
£1,881.52 |
Labour |
Bromley |
£1,842.19 |
Conservative |
Ealing |
£1,840.89 |
Labour |
Barnet |
£1,836.16 |
Labour |
Islington |
£1,814.39 |
Labour |
Greenwich |
£1,814.23 (Gloucester Circus homes: £1,956.97) |
Labour |
Hackney |
£1,773.29 |
Labour |
Lambeth |
£1,761.90 |
Labour |
Hillingdon |
£1,760.46 |
Conservative |
Southwark |
£1,692.92 |
Labour |
Newham |
£1,627.53 |
Labour |
Tower Hamlets |
£1,581.02 |
Independent |
Kensington & Chelsea |
£1,422.40 |
Conservative |
Hammersmith & Fulham |
£1,306 |
Labour |
Wandsworth |
£914.14 (Wimbledon and Putney Common homes: £950.10) |
Labour |
Westminster |
£912.05 |
Labour |
