Part of: UK Council Tax 2026 — Complete Guide → Council Tax Calculator UK 2026 — Estimate Your Annual Bill
TL;DR: London Council Tax bills have two main components: the borough element (set by each of the 33 boroughs) and the GLA precept (~£471 at Band D in 2026-27, same for all 33 boroughs). Total Band D bills range from approximately £1,471 (Westminster, with the lowest borough element) to approximately £2,327 (Lewisham/Lambeth at higher ends). Band D in London is typically below the England average because of London's large commercial tax base.
Last reviewed: 27 April 2026
The Two-Part London Council Tax Bill
Every London Council Tax bill is made up of two components:
The Borough Element: Set independently by each of the 33 London borough councils (or the City of London Corporation). This varies significantly - Westminster sets its borough element at approximately £1,000 at Band D; some outer boroughs set theirs at approximately £1,500 to £1,850 at Band D.
The Greater London Authority (GLA) Precept: A single uniform charge across all 33 London boroughs. In 2026-27, the GLA precept is approximately £471 at Band D. This is set by the Mayor of London and approved by the London Assembly. It is the same whether you live in Westminster, Croydon, Havering, or Islington.
Your total Band D charge = Borough element + GLA precept (~£471)
What the GLA Precept Pays For
The GLA's approximately £471 at Band D in 2026-27 funds:
- Metropolitan Police Service (Met Police): The largest element of the GLA budget. Policing of all 32 London boroughs (the City of London has its own separate City of London Police, not funded by the GLA precept).
- London Fire Brigade: Fire and rescue services across Greater London.
- Mayor's Office for Policing and Crime (MOPAC): Strategic oversight and commissioning of policing and violence reduction.
- Transport for London contribution: A governance contribution (not TfL's main operational funding, which comes from fares and central government grants).
- GLA strategic functions: Planning, economic development, cultural investment, and mayoral programmes.
The Mayor of London proposes the GLA budget annually. The London Assembly approves (or requires the Mayor to reconsider) the budget by a two-thirds majority. The GLA precept is capped under the Localism Act 2011 framework - above-cap increases would require a referendum.
London Borough Band D Ranges 2026-27
Lowest borough elements (excluding GLA precept):
- Westminster City Council: approximately £1,000 (consistently lowest)
- City of London Corporation: unique structure, minimal residential charge
- Wandsworth LBC: approximately £1,200 (historically low, rising)
- Hammersmith and Fulham LBC: approximately £1,200-£1,350
Mid-range borough elements:
- Tower Hamlets LBC: approximately £1,350-£1,450
- Camden LBC: approximately £1,400-£1,500
- Islington LBC: approximately £1,400-£1,500
- Hackney LBC: approximately £1,400-£1,550
- Southwark LBC: approximately £1,500-£1,600
- Greenwich LBC: approximately £1,450-£1,550
Higher borough elements:
- Lewisham LBC: approximately £1,700-£1,800
- Lambeth LBC: approximately £1,700-£1,850
- Croydon LBC: approximately £1,650-£1,750 (following Section 114 recovery)
- Bexley LBC: approximately £1,600-£1,700
Adding GLA precept (~£471) to each to get total Band D:
- Westminster total: approximately £1,471
- Wandsworth total: approximately £1,671-£1,721
- Mid-range boroughs: approximately £1,850-£2,050
- Higher boroughs: approximately £2,150-£2,327
These are approximate figures based on 2026-27 budget papers. Verify exact figures with the specific borough or on their published budget documentation.
Why London Borough Elements Are Lower Than the National Average
The England average Band D of approximately £2,280 includes councils from across the country. London boroughs typically set lower Band D rates for several structural reasons:
Large commercial tax base: London's concentration of offices, retail, and businesses generates substantial business rates income. While not all of this is retained locally (a significant portion is redistributed nationally), London boroughs benefit from a higher commercial-to-residential tax base ratio than most English councils.
High population density: London's large resident populations spread fixed service costs more widely. More households per square mile means lower per-household costs for road maintenance, waste collection infrastructure, and similar area-based services.
High Band D Equivalent base: London properties tend to be in higher bands (more Band C, D, E properties in the stock relative to the lowest bands), meaning the Band D rate is applied to a wider base of Band D Equivalent dwellings.
Political choices in some boroughs: Several central London boroughs have historically used their commercial income advantage to maintain lower Council Tax rates as a political commitment.
The Section 114 Risk for Some Low-Tax Boroughs
The Local Government Association (LGA) and the Institute for Government (IFG) have both flagged that some London boroughs that have kept Council Tax low for extended periods may be creating structural financial risk:
Croydon has already issued Section 114 notices (2020 and 2022) and has been raising Council Tax above the standard cap as part of its financial recovery.
Several other outer London boroughs have been identified by the LGA's financial resilience assessments as at risk due to combination of low-tax political choices, reserve depletion, and rising social care costs.
The Inner vs Outer London Council Tax Gap
The difference between inner and outer London boroughs in Council Tax terms is significant:
Inner London (central boroughs): Westminster, City of London, Kensington and Chelsea, Hammersmith and Fulham, Camden, Islington, Hackney, Tower Hamlets, Southwark, Lambeth, Wandsworth, Lewisham, Greenwich. These boroughs benefit most from the commercial property base. Borough elements range from approximately £1,000 (Westminster) to approximately £1,850 (Lambeth/Lewisham). Total bills including GLA approximately £1,471 to £2,321.
Outer London (suburban boroughs): Bromley, Bexley, Sutton, Croydon, Merton, Kingston, Richmond, Hounslow, Ealing, Harrow, Barnet, Enfield, Waltham Forest, Redbridge, Havering, Barking and Dagenham, Newham. These boroughs are more residentially dependent. Borough elements typically £1,400 to £1,850. Total bills including GLA approximately £1,871 to £2,321.
The GLA precept (£471) is the same for both - it is the borough element that drives the inner/outer difference.
How to Find Your London Borough's Exact 2026-27 Figure
Each London borough publishes its Council Tax setting report annually, typically agreed at full council meeting in late February. To find your borough's exact 2026-27 Band D:
1. Go to your borough's website and search "Council Tax 2026-27."
2. Find the budget paper or Council Tax page showing the Band D rate.
3. Your demand notice (issued March/April 2026) shows the breakdown: borough element + GLA precept + any other precepts.
MHCLG publishes a complete annual table of all London borough Band D rates alongside all English billing authority rates.
The GLA Budget: Where the £471 Goes
The GLA's approximately £471 per Band D property at 2026-27 funds multiple services. Based on the Mayor of London's published 2026-27 GLA budget, the approximate allocation is:
- Metropolitan Police Service (MOPAC): Approximately 54% of the GLA precept - roughly £254 per Band D. This funds the majority of the Metropolitan Police's budget not covered by central government grant.
- London Fire Brigade: Approximately 14% - roughly £66 per Band D.
- Transport for London (contribution): Approximately 5% - roughly £24 per Band D (a governance contribution; TfL's main funding comes from fares and dedicated grants).
- GLA corporate and strategic functions: The remainder, covering planning, economic development, housing strategy, cultural investment, and direct mayoral programmes.
These allocations vary year-on-year based on the Mayor's budget priorities and Assembly scrutiny.
Frequently Asked Questions
Why is Westminster so cheap compared with where I used to live outside London?
Westminster's uniquely low borough element (approximately £1,000 at Band D) reflects its extraordinary commercial property base - the West End, Mayfair, major office developments, and high-street retail generate substantial business rates income. This income effectively subsidises residential Council Tax. Most councils outside London do not have a comparable commercial base to draw on.
The GLA precept seems large - what does the Met Police actually cost per household?
The Metropolitan Police budget is approximately £3.6 billion per year. At approximately 3.4 million Band D equivalent properties in Greater London, the Met Police element of the GLA precept works out at approximately £1,050 per Band D property - more than twice the GLA precept. Central government grant funds a significant portion of policing; the GLA precept covers the gap.
I'm moving from Manchester to London - will my Council Tax go up or down?
Manchester's Band D is approximately £2,058. A typical London mid-range borough (Camden, Islington, Hackney) total Band D is approximately £1,900-£2,050. Your total bill may actually be similar or slightly lower depending on your London borough - despite London having higher living costs generally. The lower borough element (offset by the GLA precept) often produces total bills comparable to major English cities outside London.
Do all properties in London pay the same GLA precept?
Yes. The GLA precept of approximately £471 at Band D applies uniformly across all 33 London boroughs. All properties in the same band pay the same GLA element regardless of borough. The variation between boroughs comes entirely from the borough element.
How is the GLA budget approved each year?
The Mayor of London proposes the annual GLA budget, including the precept level. The London Assembly reviews and scrutinises the budget through committee hearings. The Assembly approves the budget by simple majority - but can only reject or modify it by a two-thirds majority. This gives the Mayor significant budgetary authority, constrained by the Assembly's oversight and the government's referendum threshold rules.
How we verified this
The GLA precept (~£471 at Band D 2026-27) is from the GLA's published 2026-27 budget. Individual London borough Band D figures are from each borough's published 2026-27 budget papers. The GLA Act 1999 governs the budget approval process (Mayor proposes; Assembly approves/modifies). MHCLG publishes annual Band D statistics for all London boroughs. IFG analysis covers London borough financial resilience. The IRRV provides professional guidance on London Council Tax administration.
Sources & Verification
- Greater London Authority Act 1999 (GLA budget process): https://www.legislation.gov.uk/ukpga/1999/29/contents
- GLA 2026-27 Budget (Mayor of London): https://www.london.gov.uk/
- MHCLG Council Tax level statistics: https://www.gov.uk/government/collections/council-tax-statistics
- Local Government Finance Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- IFG (Institute for Government) local government analysis: https://www.instituteforgovernment.org.uk/
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
