Labour minister says Conservative cuts force London boroughs to seek tax hikes above cap

Ministers have granted permission for five London boroughs—Kensington and Chelsea, Westminster, City of London, Wandsworth and Hammersmith and Fulham—to exceed the usual 5% council-tax ceiling as their central funding is set to be sharply reduced from next year. Wandsworth has warned residents of a 94% rise in April, and Bromley has asked the Ministry of Housing, Communities and Local Government for a similar waiver, with Lambeth expected to follow.

Labour’s Fair Funding Review improved some settlements but cut the capital’s overall share, leaving a projected £5.2 billion deficit for the city’s 33 councils by 2030. Labour minister Ms Powell told one outlet that Conservative governments had “decimated” local-government financing over the past 14 years and that Labour had recently provided the biggest settlement in a generation. She said the government cannot fix everything instantly but will work to relieve cost-of-living pressures while preserving essential services.