The east London borough that could raise council tax by 9 percent in 2026

"Back in April, Newham Council got special permission to raise its council tax by 8.99 percent - nearly double the normal increase cap of 4.99 percent - in order to help it swerve bankruptcy. As Newham faces more 'difficult decisions' and a £53 million funding gap next year, a new report suggests that it could ask for permission to increase its council tax by the same amount again."

"If that happens, a Band D property's annual bill would go up by £122.77 to £1,488.35 (which, if council tax increases by 4.99 percent everywhere else, would still be below the London average of £1,592.63). The tax increase isn't confirmed at this point - it's just one of several money-raising options put forward in the council's early budget proposals. Zulfiqar Ali, the council's cabinet minister for finance said: 'We are doing what good councils do in difficult times: planning ahead, protecting what matters most, and ensuring that every pound we spend delivers maximum value for the people of Newham.'"

"The council's other proposed options include increasing fees and charges, closing children's centres, making bin collections fortnightly instead of weekly, reducing street cleaning and cutting staff. If it goes for all of the above, the report says that the authority would save £10m. But that £10m may still not be enough to cover costs, and the council says that it may still need to ask the government for a package of exceptional financial support, which includes the special"

Newham Council received permission in April to raise council tax by 8.99%, nearly double the usual 4.99% cap, to avoid bankruptcy. The council faces a projected £53 million funding gap next year and may seek permission to repeat the 8.99% increase. A Band D bill would rise by £122.77 to £1,488.35, remaining below the London average if others raise tax by 4.99%. Proposed measures include higher fees, closing children's centres, fortnightly bin collections, reduced street cleaning and staff cuts, which together could save £10m. That £10m may be insufficient, and the council may request exceptional government financial support.

Read at Time Out London