THE city council is freezing council tax for 2026-2027 and using £19.7million in reserves to balance the budget.

The authority said the pause will help residents deal with the cost of living pressures.
Westminster City Council already has one of the lowest council tax rates in the country.

The adult social care precept, which funds care for the elderly and disabled, will increase by two per cent, 20p a week extra for band D payers – or £10.54 a year – according to a council report.

The Greater London Authority precept is rising by 4.1 per cent and will cost band D households an extra £20.13 a year.

The move to balance the books by using reserves is branded as “unusual” but not a cause for concern in the budget report.

Officers wrote: “It is clear that one-off use of reserves will not be able to solve the financial challenge faced by the council going forward.”

The council would push ahead with £350million of investments in new housing and regeneration.

This includes £174million to deliver 300 new homes and a community health and wellbeing hub at ­Lisson Grove and £34million to make Regent Street greener, safer, and more accessible.

Labour council leader Adam Hug, said: “Keeping council tax low is just one way we are helping local people with rising bills and the cost-of-living crisis.

“This budget represents an ongoing, solid, and substantial commitment to build a fairer Westminster.

Westminster city is one of five London councils granted flexibility to increase council tax by more than five per cent for at least the next two years. The council had repeatedly said this is not something it requested during consultation.