Why Havering Pays One of the Highest Council Tax Bills in London

Havering households are now paying some of the highest council tax rates in London — but why? This article unpacks the key reasons behind the rising bills, the council’s funding challenges, and how our borough compares to others across the capital.

If you’re a Havering resident, chances are you’ve noticed your council tax bill steadily increasing over recent years. For the 2025–26 financial year, the average Band D household in Havering will be paying £2,313.55 — a figure that places our borough among the most expensive in London.

Many residents are understandably asking: “Why are we paying so much more than other boroughs?” Especially when services like refuse collection, road maintenance and adult social care are broadly similar across the capital.

The answer isn’t simple, but it is clear, Havering is facing a combination of low government support, rising costs, and a smaller tax base.

Havering’s Funding Struggles

Unlike inner London boroughs, Havering has consistently received lower levels of funding from central government. Councils in more central or affluent areas — such as Westminster, Camden or Islington — often receive significantly more support for public services due to factors like deprivation weighting, business rates, and historic funding formulas.

That shortfall leaves Havering with a choice: either cut services or raise money locally through council tax. In most years, the borough has opted to increase council tax by the maximum amount allowed — currently 4.99% per year — to protect frontline services.

“Without fairer funding from Westminster, we’re left with no choice but to ask residents to contribute more,” the Leader of Havering Council said in a recent budget statement. “We simply cannot absorb inflation and growing demand for services without local taxation.”

So Why Can’t Havering Raise Money Like Westminster?

One of the main differences lies in the types of homes across the boroughs.

In Westminster and Kensington & Chelsea, thousands of multi-million-pound homes fall into the top council tax bands (Bands G and H), which generate far more revenue per household, even when their overall council tax rate is lower.

Havering, by contrast, is made up largely of Band B, C and D homes — with fewer high-value properties to tax. That means in order to meet local funding needs, more is demanded from the average home.

So while Westminster can raise millions from a small number of properties, Havering needs to collect higher rates from more people just to keep pace.

Are We Getting Value for Money?

Many residents feel that despite paying more, services haven’t improved.

“If we’re paying one of the highest council taxes in London, I’d expect better roads, more street cleaning, and reliable bin collections,” says Mark, a pensioner from Collier Row. “But the reality is, we’re getting the same — or worse — as places that pay far less.”

Council tax pays for essential services like:

• Rubbish and recycling collection
• Adult social care
• Support for children and families
• Public health services
• Housing and homelessness prevention
• Street lighting, road repairs and community safety

But in recent years, even these core services have come under pressure due to rising costs and staffing shortages.

What Can Residents Do?

If you’re struggling to keep up with your council tax payments, here are a few things to consider:

• Check your council tax band – You might be in the wrong band based on outdated property values. You can appeal through the Valuation Office Agency.
• Apply for discounts – If you live alone, are a full-time student, a carer, or on a low income, you may be entitled to a reduction.
• Ask for support – Havering Council offers payment plans and hardship relief for eligible residents. Visit http://www.havering.gov.uk/counciltax for more.

What’s the Way Forward?

Unless central government changes the way it allocates funding to outer London boroughs like Havering, the pressure on council tax is unlikely to ease. The borough’s ageing population, growing housing needs, and inflationary pressures are all adding strain to the budget.

But many residents feel they are being unfairly penalised.

“It feels like we’re being asked to pay for London’s services without any of the benefits,” says Angela, a working mother from Harold Hill. “Something has to give — and soon.”

Council Tax Comparison: Where Havering Stands

Here’s how Havering’s 2025–26 Band D council tax compares to other London boroughs:

As you can see, Havering is right at the top end of the table, outstripped only slightly by Richmond upon Thames — and miles above boroughs like Westminster and Wandsworth, despite those areas having far higher average property values.

A Final Thought

Havering’s high council tax isn’t due to mismanagement — it’s the result of a flawed funding system, limited local income sources, and rising service demands. Until the funding formula is revised or new revenue options are introduced, local residents will continue footing one of London’s biggest tax bills. 86% of the council’s budget goes on social services and homelessness by law. and for the council to even break even they would have to raise council tax by 66%.

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