The average council tax payer in Havering could end up forking out more than £2,000 following the Chancellor’s autumn statement.
As part of today’s budget announcement, Chancellor of the Exchequer Jeremy Hunt confirmed local authorities will be able to implement rises of up to 5%, 2% of which would be the social care precept, without the need for a referendum.
Up to now, this was required for any proposed council tax increases of more than 3%.
In Havering, households in band D are currently paying a full charge of £1,970.97 for 2022/2023.
However, if Havering Council was to implement the full 5%, this would see a rise to £2,069.52 when the new budget kicks in in April 2023.
Other London boroughs that would see an increase to £2,000 or above for the first time would include Croydon (£2,063.94), Bexley (£2019.14) and Waltham Forest (£2036.94).
Not all would tip over the figure however, with Barking and Dagenham’s potentially rising to £1,874.07, Redbridge £1,957.14, and Newham £1,608.87.
Havering Council has already included a proposed 1.99% increase in its council tax as part of its budget consultation.
If this were to be applied, the council estimates it would cost an average of 90p a week extra for band D properties, raising a total of £4.2 million.
Nationally, average band D council tax bills are £1,966, and are set to rise above £2,000 in April for the first time.
Responding to the autumn statement, Cllr James Jamieson, chairman of the Local Government Association (LGA), said: “Local government is the fabric of the country, as has been proved in the challenging years we have faced as a nation.
“It is good that the chancellor has used the autumn statement to act on the LGA’s call to save local services from spiralling inflation, demand, and cost pressures.
“While the financial outlook for councils is not as bad as feared next year, councils recognise it will be residents and businesses who will be asked to pay more.
“We have been clear that council tax has never been the solution to meeting the long-term pressures facing services - particularly high-demand services like adult social care, child protection and homelessness prevention.
“It also raises different amounts of money in different parts of the country unrelated to need and adding to the financial burden facing households.”
Havering Council was approached for comment.
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