What is Council Tax and how much is it

As part of our budget and council tax setting, we pay levies to agencies. These are set by the agencies and we do not have a choice in paying them.

We pay levies to:

• The Greater London Authority (GLA)
• Environment Agency
• London Pensions Fund Authority
• Lee Valley Regional Park

Mayor of London's 2026–27 budget

The Mayor's 2026–27 budget focuses on making London safer, greener and fairer. It includes major investment in policing, transport, housing, rough‑sleeping support and free school meals, with the aim of helping all Londoners reach their potential.

What the budget delivers:

• record £1.26bn for policing and crime prevention, including action against phone‑theft gangs and more support for young people and victims of exploitation
• Council Tax increase of £20.13 (Band D) to support the Met Police and London Fire Brigade
• transport upgrades, including new Piccadilly line trains, better bus services, Superloop expansion, and wider step‑free access
• continued funding for universal free school meals, affordable homes, and rough‑sleeping support
• £20m investment in AI skills to help Londoners prepare for future jobs
• ongoing support for major regeneration projects such as Oxford Street, East Bank, and Old Oak and Park Royal

Read the full Mayor of London's budget.

Council tax for GLA services

The GLA's share of the council tax for a typical Band D property has been increased by £20.13 (or £1.68 a month) to £510.51. The additional income from this increase in Council Tax will fund the MPS and the LFB.

Summary of the GLA Group budget

The following tables show where the GLA's funding comes from and the reasons for the year on year change in the budget. It also explains how the GLA has calculated the sum to be collected from council tax (the council tax requirement).
 

Detailed budget by service area

The following table compares the GLA Group's planned expenditure on policing, fire and other services (including transport) in 2026-27 with 2025-26.

The GLA's planned gross expenditure is higher this year. This reflects the additional resources the Mayor is investing in policing, the London Fire Brigade and transport services. Overall, the council tax requirement has also increased for this reason. There has been a 1.2 per cent increase in London's residential property taxbase. 

Find out more about our budget at: www.london.gov.uk/budget. 

Environmental Agency

The Council Tax (Demand Notices) (England) Regulations 2011.

The Environment Agency is a levying body for its Flood and Coastal Erosion Risk Management Functions under the Flood and Water Management Act 2010 and the Environment Agency (Levies) (England and Wales) Regulations 2011.

The Environment Agency has powers in respect of flood and coastal erosion risk management for 5200 kilometres of main river and along tidal and sea defences in the area of the Thames Regional Flood and Coastal Committee. Money is spent on the construction of new flood defence schemes, the maintenance of the river system and existing flood defences together with the operation of a flood warning system and management of the risk of coastal erosion. The financial details are:

Thames Regional Flood and Coastal Committee

 

The majority of funding for flood defence comes directly from the Department for the Environment, Food and Rural Affairs (Defra). However, under the new Partnership Funding rule not all schemes will attract full central funding. To provide local funding for local priorities and contributions for partnership funding the Regional Flood and Coastal Committees recommend through the Environment Agency a local levy.

A change in the gross budgeted expenditure between years reflects the programme of works for both capital and revenue needed by the Regional Flood and Coastal Committee to which you contribute. The total Local Levy raised by this committee has increased by 1.99%.

The total Local Levy raised has increased from £13,029,850 in 2025/2026 to £13,289,144 for 2026/2027.

London pensions fund authority

The London Pensions Fund Authority (LPFA) raises a levy each year to meet expenditure on premature retirement compensation and outstanding personnel matters for which LPFA is responsible and cannot charge to the pension fund.

These payments relate to former employees of the Greater London Council (GLC), the Inner London Education Authority (ILEA) and the London Residuary Body (LRB).

For 2026/27, the income to be raised by levies is set out below. The Greater London levy is payable in all boroughs, the Inner London levy only in Inner London Boroughs (including the City of London). 

• Inner London £7,000,000
• Greater London £1,000,000
• Total £8,000,000

From 2022 onwards, a portion of the amount previously raised as levies is being paid into the LPFA Pension Fund to address a funding deficit in respect of former GLC, ILEA, and LRB employees.

Lee Valley Regional Park

Lee Valley Regional Park is a unique leisure, sports and environmental destination for all residents of London, Essex and Hertfordshire. The 26 mile long, 10,000 acre Park, much of it formerly derelict land, is partly funded by a levy on the council tax. This year there has been a 2.25% increase in this levy. Find out more about hundreds of great days out, world class sports venues and award winning parklands at www.visitleevalley.org.uk.