Southwark residents are facing a 4.99 per cent increase to their council tax this year, meaning Band D households would pay almost £2,000 in total.
Southwark Council has described the increase in a budget report as “essential” given social care pressures and reductions in government grants.
The proposed council tax increase is made up of 2.99 per cent in core council tax and a 2 per cent adult social care precept, which would come into force from April 2026.
For a Band D household in Southwark, the annual council tax bill for 2026/27 would be £1,967.26. This also includes a proposed Greater London Authority (GLA) precept worth £510.51, which helps fund police, fire and transport services across London.
The plans are due to be discussed and formally approved at a Southwark Council meeting next Wednesday (February 25). The purpose of the meeting is to approve the 2026/27 budget, hear about the council’s long-term financial plans and to set this year’s council tax.
The council is also set to approve increasing rents on thousands of council homes by 4.8 per cent, which would also come into force from April 2026.
The Labour-run council said its Housing Revenue Account (HRA) is continuing to face “significant financial challenges” and has suggested this is down to the previous Conservative government’s “repeated interventions in rent policy”, which the council says has caused a significant shortfall in resources.
HRA is a ring-fenced account solely used as income and outcome for the council’s housing stock and related services.
The council said it was crucial to have the necessary resources to address issues such as damp and mould, and that this cannot be addressed without raising additional revenue through rents and charges.
The government’s 10-year social housing rent settlement means that from April 2026, housing associations and councils can raise social rents annually using Consumer Price Index (CPI) plus 1per cent.
So, the 4.8per cent rent increase proposed for this year was calculated using the government’s new formula. In September 2025, the CPI was 3.8per cent and when an extra 1per cent is added, it amounts to 4.8per cent overall.
The council’s shared ownership stock is also set to see its rent increase by 4.8per cent from this April. The cost of tenant service charges, which covers estate cleaning, grounds maintenance, communal lighting and door entry, is set to increase from £14.10 per week to a new charge of £15.15 per week for 2026-27.
