- Political Row Ahead of By-Election: Lambeth Green Party spokesperson Zviko Chihoro has rejected Labour claims regarding potential council tax increases ahead of the upcoming Myatt’s Fields by-election on 8 October.
- Labour Allegations: An unnamed Lambeth Labour spokesperson claimed to the Evening Standard that the Green-led administration was secretly examining whether it could secure special government permission to bypass the 5% council tax cap.
- Green Party Response: Chihoro stated that no decision on council tax has been made and highlighted the £116m Exceptional Financial Support needed to handle the financial situation inherited from previous Labour administrations.
- Liberal Democrat Clarification: Liberal Democrat finance spokesperson, Councillor Chris Nicholson, confirmed he was unaware of any formal approach to central government and noted that the cross-party budget working group has not yet convened.
- Context of the By-Election: The Myatt’s Fields by-election was triggered following the passing of Labour Councillor Annie Gallop.
Lambeth (South London News) September 19, 2026 – As reported by an unnamed Lambeth Labour spokesperson to the Evening Standard, the Green-led administration in Lambeth is allegedly examining options to secure special government permission to raise council tax above the current 5% cap. The unnamed Labour representative claimed that the Greens were secretly trying to clobber local residents with huge council tax bill increases. Following the publication of these claims, the statements were shared across various Labour social media platforms as part of the party’s campaign messaging.
As reported by Zviko Chihoro, spokesperson for the Lambeth Green Party, these claims are entirely unfounded. Chihoro hit back at the allegations, confirming that no decision on council tax rates has been made. Addressing the wider fiscal landscape of the borough, Chihoro described the financial situation inherited from previous Labour rule as an utterly shameful record.
How Have Other Political Figures Reacted to the Council Tax Claims?
As reported by Councillor Chris Nicholson, finance spokesperson for the Liberal Democrats, there is no evidence of a formal proposal to exceed the statutory capping limits. Nicholson confirmed that he was unaware of any approach made to central government to request special dispensation for a tax hike. Furthermore, Nicholson added that the cross-party budget working group, which serves as the formal body where such financial measures would be discussed, has not yet met.
Why Is the Myatt’s Fields By-Election Significant?
The political dispute over local taxation arises three weeks prior to the Myatt’s Fields ward by-election, scheduled to take place on 8 October. The by-election was called following the passing of Councillor Annie Gallop. The contest has intensified political debates between the competing parties over fiscal responsibility and local government spending.
As reported by Brixton Buzz, the Green-led administration took control of the council while facing a substantial financial emergency inherited from the previous Labour administration. This situation required the securing of £116m in Exceptional Financial Support from central government. The outlet clarified that this support does not constitute a direct grant, but rather provides the local authority with permission to borrow funds or utilise capital receipts to cover day-to-day operational expenditure.
What Is the Background to the Lambeth Financial Emergency?
The financial landscape in Lambeth has been shaped by long-standing structural deficits and significant borrowing requirements. Following consecutive years of budgetary pressures, the council required central government intervention through Exceptional Financial Support (EFS) to balance its revenue budget. Under standard UK local government finance rules, local authorities are prohibited from using capital funds or borrowing to finance day-to-day operational services unless explicitly authorized by the Department for Levelling Up, Housing and Communities (DLUHC).
The granting of £116m in EFS permission allowed the local authority to stabilize immediate service delivery, but it also increased long-term debt obligations. Under UK legislation, local councils seeking to raise council tax above the set threshold (currently 5%, including the adult social care precept) are required either to hold a local referendum or to apply for specific legislative dispensation from central government. The debate regarding whether Lambeth Council would require such dispensation has become a focal point of discussion regarding the borough’s long-term financial stability.
How Will This Development Affect Local Residents and Taxpayers?
For the residents and council taxpayers of the Myatt’s Fields ward and the wider London Borough of Lambeth, this political debate highlights potential changes to household expenditure and local service provision.
Should any administration successfully seek central government approval to raise council tax beyond the 5% cap, local households would face higher annual property tax bills during an ongoing period of elevated living costs. Conversely, if council tax remains capped while the council manages its £116m borrowing authorization, the administration may need to identify significant operational efficiencies or service reductions to meet its statutory obligation to maintain a balanced budget.
