Kingston Council Approves Nearly Five Percent Tax Increase

Residents of Kingston are facing yet another increase in their council tax, as the local council has approved a hike of 4.99%, making it the most expensive borough in London. This decision, made on February 27, 2025, will see the average Band D household bill rise from £2,374 to £2,489, reflecting the growing financial pressures faced by local authorities.

Cllr Andrew Wooldridge defended the increase, stating, "No council wants to increase council tax, but we must be honest about the alternatives. Without this budget, services that residents rely on, care for vulnerable adults, support for children, and maintenance of our streets and public spaces would be at risk." The increase translates to an additional £95.01 for the council and £18.98 for the Mayor of London, culminating in an annual rise of over £100 for the average household.

The disparity in council tax rates across London boroughs is stark. Kingston's new bills exceed those of neighboring Richmond, which will see its council tax rise to £2,372, and are nearly £1,500 higher than Wandsworth, the cheapest borough at only £998. Croydon, which has also faced financial challenges, comes in as the second most expensive borough, with bills reaching £2,480 following a similar 4.99% increase.

Kingston's residents are questioning the rationale behind such high council tax rates. Local resident Tom Yelland expressed frustration, saying, "It’s a joke. The council know we have to pay it so they increase it." In contrast, Andrea Tucker pointed to a lack of central government support, arguing, "Questions need to be asked of central government. They continue to give Kingston little or no settlement whereas other boroughs get heavily subsidised."

The council's budget report highlights extreme financial pressures, particularly due to an increased demand for services like adult social care. Kingston is expected to receive only 13.7% of its funding through the Revenue Support Grant, leaving it to raise nearly 75% of its funds through council tax. This contrasts sharply with Tower Hamlets, which receives over 40% of its funding from government grants and only raises 35.6% of its income through council tax.

In the broader context of council tax policies across the UK, new regulations set to take effect on April 1, 2025, will allow local authorities to impose higher rates on second homes. An estimated 500,000 second home owners could be affected by this change, which allows councils to charge up to double the standard council tax rates. Popular areas such as Cornwall and North Yorkshire are expected to see significant revenue increases from this policy, with Cornwall County Council projecting an additional £30 million annually.

As councils grapple with funding shortfalls, the Local Government Association has noted, "There is a desperate need for more affordable housing across the country, and councils need all options possible to ensure a supply of homes for rent and sale that meets local needs. Charging a council tax premium for long-term empty and second homes is one way of encouraging owners to bring these properties back into permanent use." However, they also caution that council tax is not a long-term solution to the pressures facing local services.

April 2025 is set to bring a wave of price hikes affecting households across the UK, with energy bills rising by 6.4% as Ofgem increases its price cap for a third consecutive quarter. Water bills will also see an average increase of £123 per year, the largest rise since the industry was privatized in 1989. Analysts warn that these increases could add another £49.45 to the average household's monthly expenses, which already amount to £2,062 for essentials.

In addition to council tax, households will face rising costs for broadband, mobile services, and other utilities. The standard rate of car tax will rise by £5, and electric vehicles will now be subject to tax for the first time. With many households already feeling financial strain, the upcoming bill hikes are expected to exacerbate the cost-of-living crisis.

As Kingston residents prepare for their new council tax bills, they may also want to explore available support options if they are struggling to meet these rising costs. The council has indicated that assistance may be available for those in need, but the growing burden of taxation and rising living expenses continues to loom large over many households.

In conclusion, the latest council tax increase in Kingston and the broader context of rising costs across the UK highlight the ongoing financial challenges faced by local authorities and residents alike. As councils seek to balance budgets amid funding shortfalls, the impact on households is becoming increasingly pronounced, calling for a reevaluation of how local services are funded and supported.