Greenwich Council Tax Up 4.99%: £100 More for Locals

Key Points

• Greenwich Council plans a 4.99 per cent council tax increase starting April 2026, the maximum allowable without a referendum.
• This equates to £1.85 extra per week for Band D households, or nearly £100 annually when including the GLA precept.
• The increase comprises 2.99 per cent on the main council tax rate and 2 per cent on the Adult Social Care precept.
• Expected to generate £6.9m in additional revenue, covering just under half of the predicted £14m budget gap for 2026/27.
• Council proposes £7.1m in savings, primarily from reviewing children’s social care services.
• A medium-term financial strategy report forecasts a balanced budget for 2026/27 but warns of escalating deficits: £35m in 2027/28, rising to over £100m by 2029/30.
• Report to be presented to the Overview and Scrutiny Committee on 9 February 2026.
• Greater London Authority (GLA) precept, under Mayor Sadiq Khan, will add £20.13 for Band D properties, making the total rise 4.8 per cent.
• Council described as cash-strapped, facing pressures from social care and temporary housing demands.

Greenwich (South London News) February 5, 2026 – Greenwich Council is preparing to raise council tax by 4.99 per cent from April, adding £1.85 weekly to Band D household bills as it battles a £14m budget shortfall for the coming year. The authority aims to balance its 2026/27 finances through this tax hike and £7.1m in savings, predominantly targeting children’s social care reviews. A forthcoming report highlights deepening future deficits, reaching over £100m by 2029/30 amid ongoing funding pressures.

Why Is Greenwich Council Raising Taxes?

The decision stems from the council’s medium-term financial strategy, detailed in a report scheduled for discussion by the Overview and Scrutiny Committee on 9 February 2026. As outlined in the MyLondon News coverage, the strategy charts a path to a balanced budget for 2026/27 while projecting significant gaps ahead. The council anticipates a £14m shortfall next year post the government’s provisional Local Government Finance Settlement.

Following the government’s provisional Local Government Finance Settlement, Greenwich predicts next year’s budget gap will be £14m, according to the MyLondon report. It will attempt to bridge this gap by increasing council tax and making savings. The cash-strapped authority predicts it will have a £35m budget deficit in 2027/28, increasing to over £100m by 2029/30.

Greenwich Council hopes to deliver a balanced budget for next year by raising council tax and making £7.1m in savings, with most coming from a review of children’s social care. The report sets out how Greenwich Council will deliver a balanced budget for 2026/27, as well as setting out forecasted budget gaps for the future.

What Does the Tax Increase Mean for Households?

For a typical Band D property, the 4.99 per cent rise translates to £1.46 more per week from the council tax alone, or nearly £76 annually. Greenwich plans to increase its council tax by 4.99 per cent at the beginning of the next financial year. This consists of a 2.99 per cent increase in the main council tax rate and a 2 per cent increase in Adult Social Care precept.

This is the maximum amount Greenwich Council can increase its council tax without a local referendum. Greenwich believes this bump in tax revenue will raise £6.9m, plugging just under half of the authority’s predicted budget gap. However, residents also face the GLA precept, set by Mayor Sadiq Khan at an additional £20.13 for Band D properties, pushing the total weekly increase to £1.85 and the overall rise to 4.8 per cent.

Mayor Sadiq Khan is set to increase the GLA precept by £20.13 for a Band D property, which means the total increase for those paying council tax in Greenwich next year will be 4.8 per cent. Residents also have to pay tax to the GLA, with that money going towards TfL, emergency services and other citywide public resources. This combined effect means the average household will pay nearly £100 extra over the year.

How Will the Council Achieve Savings?

Savings form a critical pillar of the strategy, totalling £7.1m for 2026/27. Most of which will come from a review of children’s social care, as stated in the MyLondon article. The council is proposing £7.1m in savings to balance next year’s budget, most of which will come from a review of children’s social care.

The cash-strapped authority has previously faced scrutiny over social care and temporary housing costs. Greenwich Council is set to raise its council tax by 4.99 per cent in April, resulting in a payment increase of £1.85 per week for a Band D household. These measures reflect broader pressures on local authorities, with Greenwich described as cash-strapped in related coverage.

When Will These Changes Take Effect?

The tax rise and savings plan are slated for implementation at the start of the next financial year in April 2026. Greenwich Council is set to raise its council tax by 4.99 per cent in April. The report on the council’s medium term financial strategy for the next four years is going before its Overview and Scrutiny Committee on February 9.

This timeline allows for scrutiny and potential adjustments before final approval. The council plans to increase its council tax by 4.99 per cent at the beginning of the next financial year.

What Are the Long-Term Financial Projections?

Greenwich faces mounting challenges beyond the immediate year. The authority predicts it will have a £35m budget deficit in 2027/28, increasing to over £100m by 2029/30. A report on the council’s medium term financial strategy for the next four years sets out forecasted budget gaps for the future.

These projections underscore the unsustainability of current funding models without further interventions. The cash-strapped authority predicts it will have a £35m budget deficit in 2027/28, increasing to over £100m by 2029/30.

Who Is Affected and What Are the Broader Implications?

Primarily Band D households, representing the average, will see the £1.85 weekly hike, but all bands will experience proportional increases. The Adult Social Care precept targets specific vulnerabilities, comprising 2 per cent of the rise. This consists of a 2.99 per cent increase in the main council tax rate and a 2 per cent increase in Adult Social Care precept.

Residents in Greenwich will feel the combined weight of local and GLA taxes, funding transport like TfL and emergency services. With that money going towards TfL, emergency services and other citywide public resources. The strategy reflects national trends where councils grapple with central government settlements that fail to match rising demands.

What Is the Role of the Overview and Scrutiny Committee?

The committee meeting on 9 February 2026 provides a key checkpoint. The report is going before its Overview and Scrutiny Committee on February 9. Here, councillors will dissect the proposals, potentially influencing final decisions.

This democratic oversight ensures resident voices are considered before cabinet approval. The report sets out how Greenwich Council will deliver a balanced budget for 2026/27.

Why Is Children’s Social Care a Savings Target?

Children’s social care dominates savings plans due to its escalating costs. Most of which will come from a review of children’s social care. Greenwich has faced prior pressures here, alongside adult care and housing.

Councils nationwide prioritise such reviews to sustain vital services amid fiscal constraints. The council is also proposing £7.1m in savings to balance next year’s budget.

How Does This Fit National Trends?

Greenwich’s moves mirror wider local government woes, with many authorities maxing out tax rises. This is the maximum amount Greenwich Council can increase its council tax without a local referendum. Government settlements often lag inflation and demand, forcing tough choices.

The provisional Local Government Finance Settlement informs these calculations. Following the government’s provisional Local Government Finance Settlement, Greenwich predicts next year’s budget gap will be £14m.

What Happens Next in the Budget Process?

Post-scrutiny, the cabinet will deliberate, culminating in full council approval before April. Greenwich Council hopes to deliver a balanced budget for next year. Public consultation may feature, though not detailed in the report.

Residents can engage via committee sessions or councillor contacts. It will attempt to bridge this gap by increasing council tax and making savings.

Are There Alternatives to Tax Rises?

Savings alone fall short, hence the tax component. Greenwich believes this bump in tax revenue will raise £6.9m, plugging just under half of the authority’s predicted budget gap. Further efficiencies or grants remain possibilities, but projections assume conservative scenarios.

The medium-term strategy spans four years, signalling ongoing vigilance. The report on the council’s medium term financial strategy for the next four years.