Lewisham plans council tax increase of 4.99%

Lewisham Mayor and Cabinet agreed the recommendations at a meeting on 11 February. The planned increase will help meet “recognised funding pressures” and rising demand for services such as temporary accommodation and social care.

The council has proposed to increase council tax by 4.99% from April, as part of the 2026/27 budget.

This increase is made up of a 2.99% increase in core council tax, and a 2% increase in adult social care.

For a Band D household in Lewisham, the annual council tax bill for 2026/27 will be £2,237.33, and represents an overall increase of £102.20 compared to 2025/26.

Of this, £510.51 relates to the Greater London Authority (GLA) precept which helps fund police, fire and transport services across London and is collected by the council on behalf of the GLA.

Last July, the council announced a budget savings report which outlined cuts of almost £30m which needed to be implemented by 2026/27.

The Children and Young People directorate faces the largest cuts, with £7.09m of savings identified. Adult Social Care and Health faces £5.57m of savings, which includes a review of care home placements where one-to-one care is provided, as well as managing vacancy factors.

The council also intends to reduce the maximum council tax reduction scheme from 75% to 50%, which is set to save £1m. Meanwhile the council has identified a temporary accommodation cost reduction of £2.49 million.

Brenda Dacres, the Lewisham mayor, told cabinet members on 11 February that the council still needs to deliver around £35m of savings over the next three years, even though the figure has been brought down from £50m due to an increased amount of government support.

“Even with this welcome news, this is a serious challenge, we are approaching it in a careful, responsible and value-driven way. Our aim is to put the council on secure financial footing while continuing to protect the services that matter most to residents," she said.

“At the same time we are continuing to invest in Lewisham’s future. The budget includes funding to meet rising pressures, targeting investments in areas that improve people’s lives alongside capital investments in housing, regeneration education, skills and the local environment.”

She added: “In summary this budget reflects difficult but necessary choices in a challenging and financial environment shaped by years of reduced funding for local government.

“But it also reflects a Labour council that believes in strong public services, long-term planning and working with our communities to build a fairer future with clear priorities, strong values and careful financial management. We remain confident in Lewisham’s ability to meet the challenges ahead and to continue moving forward together.”

Later on in the meeting, councillor Amanda De Ryk, Cabinet Member for Finances, Resources and Performance, announced that the council’s Core Spending Power had increased from £422 million to £426 million, due to a last-minute change to the Local Government Finance Settlement which was announced on Monday (February 9).

The Mayor and Cabinet proceeded to agree the recommendations set out in the budget report. The council will vote on the budget plans at the next full council meeting on Wednesday, March 4.

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