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London Councils Face Tax Hikes Amid Funding Reforms

11/22/2025

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Summary

Story summary

London councils may raise council tax above the 4.99% cap without a public vote due to funding reforms.
The government plans to redirect grants from low-need to higher-need areas, hitting central London councils hardest.
Kensington and Chelsea could face a £30.1 million shortfall by 2028/29, prompting a 27.4% tax rise, while some Midlands and North areas may benefit.

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Story summary

London councils may raise council tax above the 4.99% cap without a public vote due to funding reforms.
The government plans to redirect grants from low-need to higher-need areas, hitting central London councils hardest.
Kensington and Chelsea could face a £30.1 million shortfall by 2028/29, prompting a 27.4% tax rise, while some Midlands and North areas may benefit.