Residents in Croydon and Sutton will see their council tax bills rise by the maximum allowed amount from April, after both boroughs agreed increases of 4.99 per cent.
The rise, which comes into effect on April 6, is the highest councils can impose without holding a local referendum and has been adopted by most London authorities amid ongoing pressure on local government finances.
Both councils said the increase includes a 2.99 per cent general rise plus a two per cent adult social care precept.
Croydon
Croydon’s budget for 2026/27 was approved at a Full Council meeting in February and confirms a 4.99 per cent increase.
For a typical Band D property, the annual bill will rise from £2,480.48 to £2,599.91, an increase of £119.43 a year, or about £2.30 per week.
Band C households will pay £2,311.03, while Band A will pay £1,733.27.
The council said the rise comes as it continues efforts to stabilise its finances after declaring effective bankruptcy in 2020.
Croydon is still carrying a historic debt of around £1.4 billion, costing about £86 million a year to service, and will require £119 million in exceptional financial support from the government in 2026/27.
Executive Mayor Jason Perry said: “Croydon’s recovery remains fragile.
“We are working hard to keep improving our council, reduce costs and become a smaller, more efficient organisation.”
Opposition leader Stuart King criticised the increase, saying residents have faced repeated rises in recent years.
He said: “Jason Perry has hiked council tax for residents by a staggering 33 per cent.”
In 2022/23, the Band D bill in Croydon was £1,965.66.
Sutton
Sutton Council has also approved a 4.99 per cent rise for 2026/27, made up of the same 2.99 per cent core increase and two per cent adult social care precept.
For Band D homes, bills will increase from £2,269.72 to £2,378.64, a rise of £108.92 per year, or about £2.10 per week.
Band C properties will pay £2,114.35, while Band A will pay £1,585.76.
The council said it faces a difficult financial outlook, with government funding reduced and demand for services increasing.
It expects a £34 million budget gap by 2028/29 and plans to make £13 million in savings this year.
Councillor Sunita Gordon, lead member for finance, said: “The government is aware of this; rather than funding these services properly, they have left us in a position where the only way we can raise money for these essential services is to put council tax up by the maximum amount.”
Council leader Barry Lewis added: “Increasing council tax is not a decision we make lightly.
"We know that people in Sutton are still struggling with the cost of living.”
Most London boroughs are increasing council tax by 4.99 per cent this year, with only a small number choosing lower rises.
The Greater London Authority precept has also gone up, meaning overall bills for many households will increase by more than the borough rise alone.
Across England, more than 100 local authorities are raising council tax by at least 4.99 per cent as councils deal with rising costs and reduced funding.
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